Sounds smart. It probably works great for the sort of computing where you don't need fast response times and uptimes. If you can't get the trained model back this second that's fine. You could probably use it for things like rendering CG too.
Where are you getting your information about their carbon crediting program? From what I can tell publicly, they had one pilot project issued Upstream Emission Reductions Credits issued by the German Federal Environment Agency in November 2022 and after that were looking into generating credits under a Verra methodology (https://crusoe.ai/pdfs/Crusoe_ESG+Report_2023.05.10.pdf). I haven't been able to find any information from Crusoe or on the Verra registry about them following through on that. Their most recent ESG reports drop basically all talk of carbon credits altogether.
The $40 per ton figure you mentioned seems way too high for what they could get on the market today for an avoided emissions credit, that's more what I would expect for a nature-based carbon removal credit. Perhaps the data center story is so compelling that big tech companies would pay that, but hard to see how that number works at scale.
Betting yes. They got into the bitcoin mining business early. A lot of this "free" gas also has sulfur and CO2 that will destroy a genset if not treated. That's why it's called acid gas. With the growth in behind the meter data centers we now have 4 big straws in the gas supply "milkshake" - domestic power gen, domestic residential/commercial demand, LNG exports, and industrial/chemical. Prices have to go up.
And then there's the issue of gas supply. New well production falls by >60% the first year. This one looms over all gas-based ideas. With oil content falling gas prices have to go up to keep the drill bits turning.
Sounds smart. It probably works great for the sort of computing where you don't need fast response times and uptimes. If you can't get the trained model back this second that's fine. You could probably use it for things like rendering CG too.
Yes it’s not meant for low latency inference applications.
Where are you getting your information about their carbon crediting program? From what I can tell publicly, they had one pilot project issued Upstream Emission Reductions Credits issued by the German Federal Environment Agency in November 2022 and after that were looking into generating credits under a Verra methodology (https://crusoe.ai/pdfs/Crusoe_ESG+Report_2023.05.10.pdf). I haven't been able to find any information from Crusoe or on the Verra registry about them following through on that. Their most recent ESG reports drop basically all talk of carbon credits altogether.
The $40 per ton figure you mentioned seems way too high for what they could get on the market today for an avoided emissions credit, that's more what I would expect for a nature-based carbon removal credit. Perhaps the data center story is so compelling that big tech companies would pay that, but hard to see how that number works at scale.
I relied on two links: (1) https://crusoe.ai/pdfs/Crusoe_ESG%2BReport_2023.05.10.pdf ; and (2) https://carboncredits.com/crusoe-energys-600m-raise-fuels-ai-revolution-with-clean-energy-data-centers/ . That said, you raise a good point about the $40/ton figure. I'm not sure where I got that from. I'm going to remove it. Thanks.
Betting yes. They got into the bitcoin mining business early. A lot of this "free" gas also has sulfur and CO2 that will destroy a genset if not treated. That's why it's called acid gas. With the growth in behind the meter data centers we now have 4 big straws in the gas supply "milkshake" - domestic power gen, domestic residential/commercial demand, LNG exports, and industrial/chemical. Prices have to go up.
And then there's the issue of gas supply. New well production falls by >60% the first year. This one looms over all gas-based ideas. With oil content falling gas prices have to go up to keep the drill bits turning.
Thanks, that’s a good point that I hadn’t considered. Presumably that’s one reason Crusoe seems to be diversifying its energy sources.