Lighthouse Energy

Unlocking the Power of Wind - Accelerating the deployment of renewable energy with cryptocurrency. 

The problem we are tackling is one of renewable energy's largest issues, and along the way, we are boosting the economics of wind generation and solving some inefficiencies in the design of our local energy system. 

The problem I am referring to is Curtailment, aka the underutilization of energy and in most cases renewable energy. Often done to prevent overburdening a grid or due to excess energy availability. Curtailment is in essence done to keep the balance between supply and demand in check, and it is fundamentally not a bad principle. But wasting clean electricity is bad for business and the environment.

In the Ontario region (province) alone the curtailment issue costs on average $1 Bn in lost clean energy, which is enough to power over 780,000 homes, with this number set to expand over 10x. 

Beyond the cost of wasted clean electricity, curtailment also leads to increased energy prices for consumers, the pigeonholding of renewables entering the grid, increases our reliance on GHG-emitting sources and reduces the incentive for renewable energy development.

Our solution is a turn-key container fully equipped with all the hardware necessary to mine cryptocurrencies (bitcoin in particular). These containers will be scalable, rapidly deployable, and moveable. 

Our plan is to mine cryptocurrencies at underutilized renewable sources, during off-peak hours, ex 3 am - 7 am. This will let us utilize stranded renewable energy that would otherwise go to waste.

The equipment we employ is a readily available kind of specialized computer commonly called an ASIC. Following the idea, these Asic's run on renewable power during the off-peak hours to try and capture 100% of the clean electricity generated. During the on-peak hours, we would "turn off" a flexible portion of the miners but keep a few going to ensure nearly 100% of the clean electricity is being utilized not ~70% - 90%.

The goal behind this is to diversify and boost a windmill owner's income and incentivize the long-term deployment of renewable assets. 

Tackling the problem of efficiency and wasted clean power is a crucial step toward achieving a Net-Zero future. The potential benefits of doing so are extensive, from providing access to more affordable and cleaner energy, reducing GHG emissions, and stimulating local economies to reducing environmental degradation/pollution, all while building a resilient renewable-based energy system.

My solution was initially designed to benefit remote, often indigenous communities that are not connected to the national Canadian grid system (~207 disel-reliant communities). I wanted to provide them with an additional incentive and financing structure to build up their wind energy capacity. With an ultimate goal of creating a strong and reliable microgrid to power their community.

The idea since then has been expanded to help all Canadians, with a focus on accelerating the introduction of renewable energy into Canada. I still plan to provide assistance to remote communities, but renewable energy sources such as wind and solar have yet to make a significant contribution to Canada's energy mix, with only 4-8% of the total energy being generated by renewable sources.

Despite promises of an 80% renewable energy future, Canada is still largely dependent on fossil fuels and hydropower. To reach its commitment of net-zero emissions, Canada is proposing the use of carbon capture technology to offset emissions from fossil fuels, rather than focusing on the electrification of the grid system through renewable sources. This approach is unfortunately behind schedule, as the plan for achieving a net-zero electricity system was only released this year. This means that both remote communities and all Canadians are being underserved by the current strategy, as the goal of a truly renewable energy future remains out of reach.

My solution seeks to further incentivize wind energy development across Canada and reduce the significant economic burden that Canadian taxpayers and the government will face in the decarbonization of the energy sector. It is estimated that $400 to $600 Billion is needed to decarbonize the energy sector, and through Bitcoin mining activities, I hope to replace up to 20% of this cost.

My team currently consists of myself, a computer science graduate with a deep understanding of energy and cryptocurrency from years of research and personal interest. 

With the additional support of 2 local accelerators (Social Venture Zone & Clean Energy Zone) who provide a diverse set of backgrounds and expertise, as well as a university-backed (Mohawk EPIC) technical program to help prototype. 

Unfortunately, my brother, who was another computer scientist and had a strong passion for cryptocurrencies and the tech world, was unable to join the team as he passed away two years ago. This project was a result of my grieving and an attempt to stay connected to him. It is my passion project in which I hope to help people and the planet while doing something both of us loved.

For the past 1-2 years, I have been conducting extensive research into the Canadian energy field. I have faced many obstacles in obtaining certain information, as well as encountered discrepancies and conflicting reports in the available data. Despite these difficulties, I have been able to piece together a fairly comprehensive overview of the energy landscape, including the legal frameworks, regulatory boards, and various opportunities for collaboration. I am also in the process of conducting customer interviews with a range of different groups to asses our competitiveness in the market.

I have also witnessed the devastating effects of climate change first-hand, from extreme floods in Pakistan to heatwaves in Dubai and freak storms in Canada. Additionally, I am an avid researcher of cryptocurrency and its potential synergies with clean technology, with the aim of using it to achieve social and humanitarian objectives.

My innovative application of technology, strong combination of industries, and novel solution will hopefully lead to effective outcomes and have come at the perfect time, with inflation on the rise and more investments being made into the energy/clean-tech space. 

Onboarding even a single megawatt of additional wind energy onto the Canadian grid can help reduce GHG emissions by an impressive 3,499 metric tons, and the process is surprisingly simple. These factors all make this project an incredibly attractive and viable option for both investors and those looking to reduce their environmental impact.

Lighthouse Energy is committed to participating in the emerging bitcoin mining market in a sustainable and socially conscious way. We are dedicated to inspiring our peers to take advantage of clean energy sources and to give back to the local communities with which we partner. We believe that only by working together, can we create a sustainable and positive impact for the future.

My impact goals for the next year will be to increase awareness and engagement around sustainable and socially conscious practices in the bitcoin mining market. 

To achieve this, I plan to partner with local communities to provide educational resources and increase visibility and access to clean energy sources. Additionally, I will work to build relationships with other miners and like-minded individuals who share the same goals and values. 

Additionally, listed below are our 5 main company guiding goals for the upcoming year.

1. Complete a functional prototype of our product.
2. Identify and secure seed funding.
3. Build a team of at least 5 employees.
4. Conduct customer research to validate product-market fit.
5. Develop a marketing plan and launch a website.

My solution combines emerging Cryptocurrency technology with traditional energy methods to increase the use of renewables in Canada. This technology is often used for bitcoin mining, and we plan to use these bitcoin miners during periods when there is a surplus of power and low demand.

Application Specific Integrated Circuits (ASICs) aka bitcoin miners are the core technology behind our operations (TRL-9). These ASICs are readily available on the public market through multiple vendors, and each miner can vary in terms of their hashing power, energy efficiency, and price.

These Miners play a vital role in the bitcoin network, as they help to verify and secure the blockchain, ensuring the integrity of the system. This process, known as “hashing”, involves solving complex mathematical problems that require a significant amount of computing power. When a miner successfully solves one of these problems, they are rewarded with a certain number of bitcoins. As such, miners are essential to keeping the bitcoin system running.

Currently, Canada has ~13,855 megawatts of wind generation, generated by around 9,000 turbines and 800 wind farms spread throughout the country. 

We have yet to launch our solution, and we are currently exploring options to secure the necessary funding. Over the next few months, we plan to focus on testing and prototyping, with the goal of deploying our solution at three to five wind farms in Ontario. If we are successful in garnering private and government interest, we intend to expand our operations to additional sites and continue to promote sustainable and socially conscious practices in the bitcoin mining market.

Some of the current barriers we face in accomplishing our goals in the next year are limited access to funding and resources, difficulty in gaining visibility and attention from the public and private sectors, and the challenge of finding and collaborating with like-minded individuals who share our goals and values. 

Additionally, there are a number of technical and logistical challenges associated with launching and expanding our operations, such as setting up the infrastructure to support our operations, testing and prototyping our solution, and ensuring that our solution is secure and reliable.

Social Venture Zone @ Toronto Metropolitan University  

& Clean Energy Zone @ Toronto Metropolitan University

Energy & Power Innovation Centre @ Mohawk College (Technical Assistance)

Our partner organizations provide basic entrepreneurship training and industry/market analysis and fit, as well as pitch fundamentals and grant locating and review services. They also help to facilitate connections to local energy systems. Our final partner organization assists with the technicals of building/testing our prototype.

    What we do is empower renewable energy operators and communities.

To monetize our solution, we have defined  5 potential revenue streams, wherein we deploy the same technology with different applications. These areas include off-grid underutilized Wind energy, demand response services via local energy operators, largescale industries, etc. 

For some specifics relating to Wind energy, to depict the relationship between our container and an average Canadian windmill the container adds ~16% onto the total cost of the windmill & can boost revenue by 24% and up to 68% in some cases, indicating strong economic benefits.

Currently, we are seeking funding to build and test a prototype solution. We have estimated the cost per prototype project to be ~$50K.  

Our path to financial sustainability will include a mix of revenue generation via bitcoin mining & associated activities and effective cost management. 

Additional strategies include managing expenses, cyclically seeking funding, and building a diverse portfolio of assets including software, hardware, IP, etc. 

With a goal of subsidizing a portion of the development costs. To achieve this we are strategically positioning ourselves right at the intersection of 2 rapid-growth industries, cryptocurrency & energy.