Digihost Enters Long Term Solar Agreement With Regional Energy Partner and Provides Operational Update
This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated March 4, 2022 to its short form base shelf prospectus dated February 23, 2022
Digihost Technology Inc. (“Digihost” or the “Company”) (Nasdaq: DGHI; TSXV: DGHI), an innovative U.S. based Bitcoin (“BTC”) mining company, is pleased to announce that it has entered into a long-term deal to purchase community solar credits from a nearby community solar farm (the “Agreement”). The project is located in National Grid territory, and is being managed by the Williamsville, New York based energy supplier, EnergyMark. The community solar project is 5MW in size and will produce roughly 9,500,000 kWh’s of clean electricity annually – enough to power more than 1,000 homes.
Digihost’s current East Delavan, New York facility will be the anchor subscriber to the project. This facility is located in New York’s Zone-A region, where more than 90% of the power consumed is from zero emissions generation. The long-term Agreement will further reduce Digihost’s already low carbon footprint for its BTC mining operations and allow the Company to apply the community solar credits received pursuant to the Agreement against future utility bills. The solar farm is expected to begin generating renewable electricity by Q4 2022.
In pursuit of its goal to be a leading ESG organization, the Agreement was entered into by the Company in accordance with its DigiGreen Initiative, whereby Digihost is committed to achieving net zero emissions from its BTC mining operations by 2030. In addition to nearly emission free electricity at its East Delavan facility, Digihost currently participates in several Demand Response programs, which aid in grid reliability during times of heightened volatility, and further reduces carbon emissions. The Company is currently mining with greater than 90% zero emissions from its power consumption.
“Continued investment and support from the Blockchain industry will accelerate the growth of renewable electricity in the United States,” said Luke Marchiori, Digihost’s Chief Renewable Energy Officer. “This long-term Community Solar Agreement with EnergyMark demonstrates our continued commitment to sustainable mining and renewable energy development. As we grow and increase electricity consumption, we will align with additional distributed energy resources that can further reduce our carbon footprint and continue to provide essential grid reliability.”
At an operational level, Digihost increased its current hashing capacity from 450 PH/s to 650 PH/s.
Regarding its infrastructure buildout in North Tonawanda for its proposed power plant acquisition, the Company is still awaiting approval from the Public Service Commission to finalize that acquisition. The Company believes that the New York State Senate Bill S6486D (the “Bill”) passed by the New York State Senate on June 3, 2022 will not impact the Company’s proposed acquisition or its operations at the North Tonawanda plant. The Bill proposes a two-year moratorium on new or renewed permits filed in the future for proof of work cryptocurrency mining operations at fossil fuel plants in New York State. The Bill awaits the approval of New York Governor Kathy Hochul, who could sign or veto the legislation.
Based on the language of the Bill, in particular Section 7, which states that the Bill is intended to “take effect immediately and shall apply to all permits or renewal applications filed after such date,” the Company believes that, should the legislation be signed into law by the Governor, it will not apply to the proposed operations in North Tonawanda, as the Company filed renewal applications for that plant in 2021. In addition, the Bill also would not prohibit continued operation or expansion of several grid-powered cryptocurrency mining operations scattered across upstate New York, including the Company’s East Delavan facility.
Nick Williams, in-house counsel for the Company, stated, “The passage of the moratorium in the New York State Senate signals New York State’s (“NYS”) continued desire to be a leader in developing technology for a clean future. Based on the language of the Bill and the legislative record, it is our understanding that we would be exempt from the Bill based on the filing of our renewal application with the PSC in April of 2021 and our filing with the DEC in November of 2021, in each case. In addition, the Company is not using a retired plant but, rather, adding use to a plant currently in operation, not only preserving high-paying jobs in the North Tonawanda region but adding new jobs as well. We continue to work with NYS officials to confirm this understanding and to ensure we are in compliance with all rules and regulations. As always, the Company remains committed to our stated goals of leadership in both blockchain innovation and climate conscious, forward-looking technology, as well as supporting the power grid as NYS transitions to green energy.”
Additionally, the Company is pleased to announce that it is currently evaluating opportunities for operational expansion in North Carolina, Texas, Florida, and Maryland, visiting potential sites for mining which fit Digihost’s model of mining with low carbon emission generation and energy being generated from renewable sources.
Source: Globe Newswire