Soluna Signs Power Purchase Agreement with EDF Renewables for Texas Data Center Project

Rhea-AI Summary

Soluna Holdings (NASDAQ: SLNH) has signed a Power Purchase Agreement (PPA) for its Project Kati with EDF Renewables and Masdar. This project is the company's second Renewable Computing data center in Texas, to be co-located at a wind facility. Project Kati will be executed in two phases, each delivering 83 MW of renewable energy, totaling 166 MW upon completion. The project aims to power high-performance computing applications, such as AI. The agreement strengthens Soluna’s market position and underlines its commitment to sustainable energy solutions and innovation.

Positive

• Signed PPA with EDF Renewables and Masdar for Project Kati.
• Project Kati to unlock up to 166 MW of renewable energy for computing.
• Strategic positioning in the renewable energy market.
• Potential to expand Assets Under Management.
• Commitment to sustainable energy solutions and AI advancements.

Negative

• Upcoming phases require securing land leases and navigating ERCOT planning requirements, which could face delays.

Insights

Financial Analyst

The signing of a Power Purchase Agreement (PPA) with EDF Renewables and Masdar is a significant development for Soluna Holdings, Inc. in multiple ways. The agreement solidifies Soluna's access to a substantial and stable source of renewable energy for its data center operations, specifically targeting high-performance computing applications such as Bitcoin mining and AI. From a financial perspective, this PPA provides a predictable and potentially lower-cost energy source, which can enhance the company's profitability margins in the long run.

Additionally, the phased approach to Project Kati, with each phase delivering 83 MW and a total potential of 166 MW, indicates a scalable strategy. This is a positive because it implies that the company can manage its capital expenditure more efficiently over time while aligning it with operational milestones. Such scalability is important for maintaining a balanced cash flow during periods of expansion.

Moreover, co-locating the data center at an existing wind facility reduces infrastructure costs and leverages existing renewable energy assets, further boosting the project’s cost-efficiency. This strategic alignment could improve the Return on Investment (ROI) for the project, making it more attractive for investors looking for sustainable growth opportunities.

In summary, this PPA could bolster Soluna's financial standing by providing a cost-effective energy solution and facilitating scalable growth.

Tech Expert

The focus on renewable energy for high-performance computing applications such as AI and Bitcoin mining is a noteworthy trend in the tech industry. By securing a PPA with EDF Renewables and Masdar, Soluna is positioning itself at the forefront of this movement. Utilizing 83 MW of renewable energy in each phase for a total of 166 MW showcases a serious commitment to sustainable computing. This will likely appeal to tech companies and clients who prioritize environmental responsibility, thereby broadening Soluna's market appeal.

From a technology standpoint, the ability to harness renewable energy for such power-intensive applications represents a significant technological achievement. Not only does this reduce the carbon footprint, but it also leverages the efficiency and reliability of modern renewable energy sources. Co-locating the data center with an established wind facility implies optimized energy use and reduces latency issues, which can be critical for high-performance computing tasks.

This strategic move could set a precedent for future data center projects, pushing the industry towards greener, more sustainable solutions. It underlines how innovations in energy sourcing can go hand-in-hand with advancements in computing technologies.

Market Research Analyst

The strategic partnership with EDF Renewables and Masdar significantly bolsters Soluna Holdings' market position in the renewable energy sector. By signing a PPA for Project Kati, Soluna is not only securing a steady energy supply but also enhancing its credibility and attractiveness to potential clients and investors who are increasingly prioritizing ESG (Environmental, Social and Governance) criteria.

Market-wise, this move could signal to competitors and stakeholders that Soluna is serious about large-scale, sustainable growth. The additional 166 MW of hosting potential unlocked by this project could translate into higher market share and increased revenue streams, especially in the growing fields of AI and Bitcoin mining. This, coupled with the anticipated expansion in assets under management, positions Soluna as a formidable player in both the tech and renewable energy markets.

Furthermore, the collaboration with well-established entities like EDF Renewables and Masdar adds a layer of reliability and trustworthiness to Soluna's operations. This can enhance investor confidence and potentially lead to a higher valuation in the stock market.

Overall, this agreement could have a substantial positive impact on Soluna’s market perception and competitive positioning.

Set to Expand Portfolio to Unlock 166 MW of Hosting Potential

ALBANY, N.Y.--(BUSINESS WIRE)-- Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), a developer of green data centers for intensive computing applications including Bitcoin mining and AI, announced today that it has signed a definitive Power Purchase Agreement (PPA) for Project Kati with EDF Renewables and Abu Dhabi Future Energy Company – Masdar (Masdar), marking a significant milestone in the company's growth trajectory.

Project Kati is Soluna’s second Renewable Computing data center project in Texas. It will be co-located at a wind facility owned by EDF Renewables and Masdar. Project Kati will be executed in two phases, with each phase delivering 83 MW of renewable energy capacity to power high-performance computing applications including AI. Upon completion, the project is poised to unlock up to 166 MW of new hosting and joint venture potential, a testament to the company's dedication to innovation and growth. The upcoming phases of the project will focus on securing land leases and navigating ERCOT planning requirements, crucial steps in the development process.

With the signing of the PPA, Soluna solidifies its ownership of the project, positioning it strategically in the renewable energy market. This partnership reaffirms Soluna’s position as a formidable player in the renewable energy sector and underscores the Company's commitment to expanding its footprint and contributing to a sustainable future.

"This milestone demonstrates our growth and momentum in shovel-ready projects and highlights our commitment to sustainable energy solutions," said John Belizaire, CEO of Soluna Holdings. "We are excited about the opportunities this project presents, not only in expanding our Assets Under Management but also in contributing to advancements in AI technology."

Soluna continues its tradition of naming its data centers after women scientists who help catalyze major innovation. Project Kati is named after Kati Kariko, a Hungarian scientist who was instrumental in the development of mRNA-based protein therapies. Her decades of relentless work have helped form today’s modern mRNA vaccines.

For more information on Soluna and its projects, please visit solunacomputing.com

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Soluna Holdings, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and Soluna Holdings, Inc. undertakes no duty to update such information, except as required under applicable law.

About Soluna Holdings, Inc (SLNH)

Soluna is on a mission to make renewable energy a global superpower using computing as a catalyst. The company designs, develops, and operates digital infrastructure that transforms surplus renewable energy into global computing resources. Soluna’s pioneering data centers are strategically co-located with wind, solar, or hydroelectric power plants to support high-performance computing applications including Bitcoin Mining, Generative AI, and other compute-intensive applications. Soluna’s proprietary software MaestroOS(™) helps energize a greener grid while delivering cost-effective and sustainable computing solutions, and superior returns. To learn more visit solunacomputing.com. Follow us on X (formerly Twitter) at @SolunaHoldings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240522418166/en/

Sam Sova

Partner and CEO

SOVA

Sam@letsgosova.com

Source: Soluna Holdings, Inc.

FAQ

What is Soluna Holdings' recent project with EDF Renewables?

Soluna Holdings signed a Power Purchase Agreement with EDF Renewables for Project Kati, a data center in Texas.

What is the capacity of Soluna Holdings' Project Kati?

Project Kati will have a total capacity of 166 MW of renewable energy upon completion.

What is the significance of the Power Purchase Agreement for SLNH?

The PPA solidifies Soluna's ownership of Project Kati and strategically positions it in the renewable energy market.

What are the phases of Soluna Holdings' Project Kati?

Project Kati will be executed in two phases, each delivering 83 MW of renewable energy.

What type of applications will Project Kati support?

Project Kati aims to power high-performance computing applications, including AI.