THE WOODLANDS, Texas, Aug. 3, 2021 /PRNewswire/ -- Talen Energy Corporation ("Talen" or "the Company") announced today that, as part of its strategic transformation to a renewable energy and digital infrastructure growth platform, it has entered into a Joint Venture with TeraWulf Inc. ("TeraWulf"), a U.S.-based bitcoin mining company, to develop up to 300 Megawatts of zero-carbon bitcoin mining capacity. The Joint Venture, named Nautilus Cryptomine will leverage the strengths of both Talen and TeraWulf as they collectively work to advance the convergence of clean energy sources and digital infrastructure assets.
Phase I of the Nautilus Cryptomine facility is a 180-megawatt bitcoin mining facility which will be built on Talen's digital infrastructure campus adjacent to its Susquehanna nuclear power generation station ("Susquehanna") in Berwick, Pennsylvania. Nautilus Cryptomine will be powered via a direct interconnection to Susquehanna that will provide low-cost, reliable, zero-carbon electricity. The Nautilus Cryptomine facility is located "behind the meter" directly connected to Susquehanna which will provide Nautilus Cryptomine with one of the lowest electricity costs among publicly traded bitcoin mining peers in the United States.
The Joint Venture is expected to invest approximately $350-400 million in Phase I of the zero-carbon bitcoin mining operation with an aggregate anticipated hash rate that will exceed 5 exahash per second. Given its 50% interest in Nautilus Cryptomine, affiliates of Talen anticipate investing approximately $175-200 million of cash contributions into the Joint Venture, including contingency and other variables. Talen anticipates funding its share of the Joint Venture commitment from its current liquidity and from third party debt and equity sources. The commercial operation date for Phase I is currently anticipated in mid-year 2022.
"Our Nautilus Cryptomine JV is another tangible expression of Talen's transformation to a lower carbon and digital infrastructure future," said Alex Hernandez, Talen President. "Nautilus Cryptomine's mining facilities will create zero-carbon coins with the appropriate regulatory overlay, mined in the United States in a secure location. As the world's adoption of digital assets and the demand for clean power accelerates, we believe these zero-carbon coins with verifiable attributes and U.S. provenance will be highly differentiated for those seeking to invest in digital coin production. We believe our Nautilus Cryptomine coins can provide a secure, compliant, zero-carbon digital store of value to be held by investors at the largest financial institutions in the world," Hernandez continued.
In addition to generating value and advancing Talen's transformation, these projects serve as another example of Talen's Force for Good ESG strategy which, in addition to decarbonizing its asset base, will invest in its communities and provide new opportunities for its people.
"We are pleased to partner with Talen to continue to implement our model for large cryptocurrency mine development operations as we scale toward our target of 100% zero-carbon energy utilization," said Paul Prager, TeraWulf's Chief Executive Officer and chair of the board of directors. "The Nautilus Cryptomine Joint Venture is evidence of our team's decades of operational and engineering energy infrastructure expertise, which we believe is at the core of cryptocurrency mining. Combining our premier platform for sustainable bitcoin mining with Talen's attractive generation, real estate and infrastructure assets to power Nautilus Cryptomine exclusively with nuclear power creates a business that is both zero-carbon and offers attractive bitcoin mining economics. We look forward to growing and expanding the scope of Nautilus Cryptomine and believe that nuclear energy will be an important contributor as we work to accelerate the transition to a more resilient, stable and sustainable energy future."
Additional information regarding Talen's energy transition and digital infrastructure transformation is available on the Company's website and in its recent ESG Equity Investor Day presentation. Institutional investors may access a replay of the event via the following registration link:
Information on Talen's website is not part of this press release.
About Talen Energy Corporation
Talen is one of the largest competitive power generation and infrastructure companies in North America. The Company owns and/or controls approximately 13,000 megawatts of generating capacity in wholesale U.S. power markets, principally in the Mid-Atlantic, Texas and Montana. Talen is developing a large-scale portfolio of renewable energy, battery storage, and digital infrastructure assets across its expansive footprint. For more information, visit https://www.talenenergy.com/esg-focused-future/
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Cautionary Statement Regarding Forward-Looking Information
This press release includes "forward-looking statements." All statements, other than statements of historical fact, included in this press release that address activities, events or developments that Talen expects, believes or anticipates will or may occur in the future, as well as aspirational goals, are forward-looking statements. These statements are based on certain assumptions made by Talen based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement. Talen undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the issuance of this press release, except as required by law. This press release and the materials referred to herein are not an offer to sell or purchase, or a solicitation of an offer to sell or purchase, any securities.
SOURCE Talen Energy Corp.