InStar Energy Lab

Energy sector faces huge challenges ahead particularly in Poland. Most of energy production in coal based and balancing the network is becoming more complex than ever mainly because of different sources and varying demand on the market. Key developments in energy transmission are more efficient ways to store excess energy and quickly respond to peak demand of consumers and so preventing black-outs. Third issue we face are ways to increase cost efficiency of existing power plants.

Long term goal

These positive and competitive conditions allow us to plan deployment of containerized solutions for blockchain data processing. Assuming large scale operations and low cost energy sources it is highly stable profitable business even though in the long term profit margins due to fierce global competition have asymptotic tendencies.

Container blockchain data centers with heat recovery

Problem II

Although Poland is still investing in Energy SOURCES, the THREAT of blackouts is still very real. This problem is even more serious in less developed countries.

PSE, the country's energy network operator, runs the DSR (Demand Side Response) program, in which it pays large consumers for their willingness to disconnect their RECEIVERS whenever PSE requests it (when there is a risk of possible network overload).

The DSR program is used to stabilize the energy network, but few companies can afford to suddenly stop all energy-consuming processes (for a few hours) - in 2018, less than 2% of the received power participated in the program.

Problem III

It is estimated that the Bitcoin (and other cryptocurrency) mining process is responsible for 1% of global energy consumption. Some sources state that almost ¾ of this energy comes from renewable sources

the vast majority of the generated energy is emitted as heat In the process of cryptocurrency mining,

Although the process of global adaptation of Bitcoin is unlikely to stop, there is a problem of negative perception of the mining process, also in the context of wasting generated heat energy

Solution

Wouldn’t be awesome if you could:

Allocate the surplus of energy produced by renewable sources in a completely innovative way in bitcoin?

Stabilize the energy network at the same time?

Re-use most of the heat generated in a process of cryptocurrency mining?

What if all this could be achieved with one product?

Fully remotely managed and autonomous, ready to be connected to an energy source – THE TURN-ON-AND-FORGET MODEL

Proprietary optimization software based on machine learning algorithms

Adapted to participate in the DSR program - high power and appropriate software

Modules for heat recovery - drying wood, grain, malt; heating of rooms, greenhouses, swimming pools

Potential Markets I

Producers of energy from renewable sources - windmills, photovoltaics, hydroelectric plants, geothermal and classic - nuclear, coal and gas power plants

2019 is the tenth consecutive year when the value of global investment in the RES exceeds $ 200 billion

Potential Markets II

Large production plants that can achieve synergies (e.g. sawmills, malt houses, agricultural processing plants)

Especially large sawmills often have their combined heat and power plants, which can be used to power the container data center

Owners of large retail and service areas - a typical large shopping mall has 2 MW boilers installed and an electrical connection for several hundred kilowatts of power

Potential Markets III

Professional cryptocurrency mines and traditional server rooms (proprietary optimization software)

The global data center market is growing by an average of 11% per year.

Total annual revenues from mining cryptocurrencies exceed $ 6 billion, while the cost of electricity consumed is slightly above $ 3.5 billion

Business Model

I.
sales of software for managing and optimizing the work of a computing center

(SaaS or box model) !

II.
integration and sale of container DATA CENTERS (partnership with a hardware company)

DIRECT sales or rent model

III.
advisory and consultancy in the field of building and using Blockchain container server rooms

IV.
until the product launches - earning on cryptocurrencies mined at the company’s R&D center

V.
after selling a sufficient number of mining containers, we will be able to become an aggregator of the DSR system and earn on commissions from other entities participating in the system

Competitors

Pracownia nowych technologii (POLAND)

Power Mining (LITHUANIA)

Nordcoin Mining (Estonia)

CoolNet (CHINA)

BitFury (GEORGIA)

Protocubes (USA)

Everyone focuses on classic cooling and hardware solutions. Nobody offers comprehensive software for managing and optimizing the work of a computing node.

Our Advantage

We are building a research and development center (CBR), for which we received a grant from the Ministry of Investment and Development (the value of the project exceeds CHF 2.5 million)

As part of the project, we buy and install over 1,000 servers for Blockchain transaction authorization and infrastructure for them

Tests are carried out on this equipment with the goal of two things: developing a container prototype and optimization software

A side effect of servers WORKING is significant profits from mining cryptocurrencies, at a target scale of over CHF 50,000 a month (at today's BTC rate)

Our Advantage II

We are already operating at a 1 MW solar farm and considering moving to 1.5 MW biogas plant with cheap energy

We also consider building a 1MW cogeneration plant to significantly reduce the price of electricity and explore potential synergies

We have letters of intent from well-known Polish energy companies interested in implementing our product

Financial Model

In the first 2 years, the main source of revenue will be cryptocurrency mining taking place in parallel with the rest of the work of the R&D center. Careful calculations indicate possible ANNUAL profits between CHF 0.5 and 0.75 million

the analysis is based on OUR experience, own studies (we have been analyzing the cryptocurrency market for a year) and data available on the Internet

In the following years, we assume a decreasing profit from cryptocurrency mining (depreciation of owned equipment) and a growing profit from product sales (technology and containers)

Profitability is strongly dependent on the BTC rate and electricity prices