Project Example: Data Center Buyer (DCB) Requires New MWs to Build Data Center
To illustrate how this 5-step process can work for a new electricity buyer, “DCB”, let’s assume this buyer wants to build a data center facility at a new location where they need a new electricity grid connection:
Step 1: Know Their Reliable Electricity Needs
DCB’s data center facility will require at least 3.5 MWs of electricity per hour for its baseload needs, for at least 20 hours per day (2 10-hour shifts) for 350 days per year. It anticipates the facility will require 6 MWs per hour at peak demand for 3 hours each weekday afternoon from 2pm to 5 pm.
Step 2: Assess Utility Reliability & Ability to Act
The local utility can supply this power, but says it may take 2 to 3 years to provide the connection to its grid. The utility has reported several blackouts during peak demand periods over the last year, causing concern from the buyer. The cost of electricity DCB would pay would be $0.15 kwh, once connected. This price would be expected to increase each year.
Step 3: Seek viable Biomass-to-Electricity Technology Providers
Faced with a lack of electricity for two-to-three years, DCB wants to look at renewable electricity options. It has identified 3 providers, including Frontline Waste. It learned that FrontLine Waste’s smaller waste-to-electricity modular system generates 1MW, and larger, modular system 4MW per hour, with a rule of thumb of 1MW for every 20 tons of dry waste processed. All waste, including MSW, needs to be sorted and shredded. Systems can be built in about 1 year, and operate 24/7, with a staff of 2 or 3 per shift, for 344 days per year at full capacity.
For DCB, the Frontline Waste JF System seems to be a viable option to consider, especially as it can be built off-grid, utilizing both a microgrid and battery storage.
Step 4: Secure a Waste Stream
To meet its electricity needs, DCB knows it will require securing between 80-100 tons of biomass per day to run the Frontline Waste system. Note: Another system provider has a larger unit that requires 300 tons per day. It also produces more electricity than what DCB needs and can only send its electricity to the grid. It’s not a viable option.
To secure the waste, the buyer has identified other companies and municipalities with 120 tons/day of waste streams that could be collected and transported to its future waste-to- electricity facility that will be situated near its new data center. It is able to secure 85 tons from one nearby municipality and two nearby companies. DCB agrees to pick up the waste from each of them, and the providers agree to provide the waste at no cost as they save on transportation and tipping fees they’d incur if they sent their waste to landfill.
[Note: Step 3 and 4 are interchangeable, and could be done concurrently or sequentially]
Step 5: Determine if the project is financeable (acceptable ROI and payback)
DCB identifies potential revenues:
- For DCB it would have paid, at least, $0.15 per KWh from its local utility, two years from now.
- As MSW is the waste stream sourced, biochar could not be produced, but charcoal can be sold to the local municipality as road aggregate and to the local cement factory.
- Buyer ABC believes it can secure carbon credits, too.
Assuming a savings of $0.15 kWh for each kWh its system produces for DCB, the Frontline Waste team presented a proposal, which included an estimated cash flow analysis for the buyer. It projects a payback safely under 5 years, without any carbon credits factored in or tax incentives.
In summary: DCB’s new data center faced a two-year utility delay and rising blackout risks. By securing 85 tons/day of local waste and adopting Frontline Waste’s 4 MW system, it could produce reliable electricity, 365/24/7, operate off-grid, lock in predictable energy costs, and achieve a sub-5- year payback—without even factoring in carbon credits.
