Economic Synergies Between Stranded Natural Gas and Cryptocurrency Mining

March 2, 2023
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What is Stranded Gas?

Stranded gas is natural gas that is located in a remote location where there is no existing infrastructure to transport the gas to a market. In many cases, stranded gas is either vented or flared, which is not only wasteful but also harmful to the environment (methane is one of the most potent GHGs with a global warming potential that is estimated to be more than 20 times greater than that of carbon dioxide over a 100-year time horizon).

One potential solution to this problem is to use the stranded gas to create electrical power. This is done by using the natural gas as the fuel for a reciprocating engine-based generator. The electricity produced can then be fed into the power grid or it could be consumed locally.

With stranded gas, it is quite probable that the site is remote enough that it is not economical to get the electricity to the grid. Therefore, the electricity needs to be consumed locally.

There are probably infinite number of uses for locally generated power (e.g., power the oilfield equipment running the site, power a greenhouse, power an industrial site, powering a car charging station, etc.) but one of the solutions that Collicutt has developed recently centers around cryptocurrency mining.

Challenges

Cryptocurrency mining uses a lot of electrical power and it usually gets this power from the local electrical grid. This can be challenging for a few major reasons:

Grid power can be very costly for the mining companies
It can add “unnecessary” load to the power grid which may be straining to fulfill demand (depending on the location and time of the year)
The grid power may be relying on fossil fuels like coal to create their power which only exacerbates GHG emissions and other pollutants

Collicutt’s Solution

Working with a few of our customers, Collicutt has developed a power generation solution for crypto mining companies. As part of this process, we:

Determine the electrical load requirements for the crypto mining operation
Evaluate the gas composition of the stranded gas
Design a custom tuned reciprocating engine and generator based on these parameters
Containerize the solution to protect it from the elements and from vandalization
Provide a remote monitoring solution so the system can be monitored via the web
Provide lifecycle maintenance and support for the system

Take Action

The resulting solutions provide a more economical power source for crypto mining enterprises that concurrently reduce greenhouse gas emissions from methane, reduce GHG and other pollutants from grid power, and reduce overall grid power requirements.

If you and your team are looking to either more effectively use your stranded natural gas or for a more economical and environmentally friendly power source for your crypto mining system, this approach may offer a viable solution.

For more information on this or any other power generation solution, contact us via email or at the number below:

1-888-682-6888 or info@collicutt.com

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How to Implement a Fuel Blending System

October 19, 2020
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Air quality management districts, AQMDs, are continually updating their standards for reciprocating engines and the resulting emissions. Although the changes are made with the best intentions (e.g., reducing airborne pollutants), these changing standards often impose large technical challenges and require equipment upgrades or replacements which adds unexpected costs for business and industries.

Wastewater Dilemma

This is the situation one of our wastewater treatment customers found themselves in when a change in their local AQMD regulations instigated a large change in what was allowed for natural gas combustion.

This wastewater facility had three large CHP systems that used off-gas from the wastewater (produced through a digester process) as the main fuel source and natural gas as a backup fuel source. The CHP system provides electrical power for the plant, electrical power for the utility grid, and heat for the digester. The system had a combined electrical/mechanical efficiency of around 90% while removing GHG emissions from the environment so it was critical that it continue to run!

The challenge that the new AQMD ruling created was that the allowable natural gas consumption in their engines was changing from 100% to only 49%. However, the engines were originally designed with a dual fuel system that could run on either 100% natural gas or 100% digester gas but not a blend of the two fuels.

This change in allowable fuel ratios caused a big issue with the plant operations! (more…)

March 29, 2020
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“The best-in-class solution with the best-in-class cycle time”

Robust, compact design provides more relief for long-lasting performance
Spark-ignited lean-burn unit ensures low emissions
Innovative pre-combustion chambers provide efficient and stable combustion
12 unique high-volume cylinders deliver highest displacement
Less maintenance compared to 16-cylinder engine options
Fast cycle times and implementation
Smallest footprint in the competitive set

“Highest electrical efficiency in the 2 MW-class”

Before the EM series, when it came to 2 MW-class engines, your options were limited. Now, there’s a powerful new choice available:

the new SGE-EM gas engines from Siemens

The result of years of development, testing, refinement, and innovative engineering, they deliver a number of benefits that make them a true competitive choice.

Uncompromising performance to meet ever-growing demands

Economic pressures. Customer demands. Reliability concerns. Regulatory standards. In the world of power generation, you face plenty of challenges. If you want to successfully overcome them, you need to have the best solution in place. The new SGE-EM gas engines are your best solution.

“Innovative engine design and combustion technology”

Siemens is known for innovation, and the new E-Series engines carry that torch of ingenuity with a unique cylinder design that produces the highest displacement in the 2 MW-class, innovative pre-combustion chambers, spark-ignited lean-burn control capabilities, and a robust overall design that ensures maximum flexibility in a wide variety of conditions.

Natural gas–powered engines
Efficient and stable Combustion
Exceptional Displacemen
Low maintenance
Optimized materials

Maximum efficiencies in the smallest footprint.

The new E-Series engines are not only the new competitive choice in the 2 MW-class, they’re also the most compact. Their unique ability to deliver high power output with incredibly low emissions helps you create a smaller footprint—both physical and environmental.

March 20, 2020
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Problem 3: Remote power

We are continuing in our series on three main problems with the way we do power

This is part three: remote power

Did you know that in Canada 200,000 people are disconnected from the electrical grid and natural gas distribution system?

Because of the remoteness of these locations, power can cost as much as $1/kWh

Additionally, most of this power generation is powered by diesel which produces carbon intensive power.

Communities aren’t limited simply to the north but are anywhere where geography or high CAPEX to install infrastructure prevents simple and easy connection.

What are ways that Collicutt can help promote communities and operations combat these problems?

Collicutt is champion a technology called Combined Heat and Power which uses clean and cheap liquefied natural gas to generate power and heat at remote locations.

By swapping out diesel for LNG, the cost of fuel can be reduced dramatically and the overall carbon output per unit of energy can be dropped swiftly.

In communities where logistics is complicated and diesel generation is the only option, Collicutt has designed and installed diesel powered CHP facilities where the heat can be effectively recovered from the engine and can offset other fuels required to provide heating: whether that is propane or heating oil.#CollicuttEnergy #PowerGeneration

March 17, 2020
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Grid Limitations

Series: Three Main Problems With the Way We Do Power

We’re continuing in our power generation series. And today we’re talking about Problem #2, which is ‘Grid limitations’.

So what are some of the limitations of our power grid system? And how does that affect us?

The first problem is, is that it’s expensive.

Most people pay actually 50% of their utility bill is actually the cost of just getting power to your facility. And the other half is actually the cost of the energy.

The second problem is delayed access.

A lot of times we’ll have projects where we want to increase our capacity at our facility, or we want to create a new location where we need power, and there just isn’t grid access or there isn’t the capacity. This has the ability to delay projects, or significantly limit their size.

And the third issue is unreliability.

This issue is super relevant to California these days. As as we move into the dry season and there’s concerns of fires, and we see those rolling blackouts again: Power reliability is a huge issue and it’s going to cause issues around power shortages, power outages and facility shutdowns.

So what are some of the ways that Collicutt can help you with some of these limitations?

Using a technology called Combined Heat and Power, or CHP, we’re able to generate both electricity and heat onsite using a single fuel source while achieving fuel efficiencies of 93%.

Combined Heat and Power

And one of the reasons why this is so much more efficient than what currently we’re using the grid is that we’re actually getting rid of a lot of the waste along the way. We’re getting rid of that that lost heat at the point of generation, and we’re able to achieve as high as 93% overall fuel efficiency.

So Why CHP? (3 Reasons)

First reason: Cost Savings

CHO can save you significant amounts of money by generating power on site, especially when you look at the rates that we’re paying here in California. In California, we’re paying about 26 cents ($0.26/kWh) in total: 13 cents of that is the cost of transmission and the other 13 cents is the energy cost.

With CHP, you can generate power for as little as 7-9c/kWh, saving 2c/kWh in heat (fuel) costs:

Combined Heat and Power can save your money

Combined Heat and Power is an effective way of generating power and heat onsite while incurring great savings. Additionally, by having generation capabilities on site, your power reliability is increased

Second Reason: Sustainability.

in Alberta, we can save as much as 3000 tons of CO2 output per year for every megawatt of CHP installed. Why is that? Because power here in Alberta is predominantly generated by coal. And by by using clean fuel source like natural gas, salvaging the heat, offsetting the fuel source that would have provided that heat in the facility, we can get that down to a 0.2-0.25 tonnes/MWh.

Lower your facility’s environmental output

Let’s look in California. Even in California, where we have incredibly clean power, You can actually see a 14% reduction in CO2 output by using CHP.

Third Reason: Reliability.

By having on-site power generation capacity, the power reliability at the facility is dramatically increased.

Conclusion:

So, cost effective, reliable, sustainable. CHP is a great application for a lot of these problems relating to the grid limitations.