Crypto mining company loses bid to force BC Hydro to provide power

Crypto mining company loses bid to force BC Hydro to provide power

[ad_1]

VANCOUVER – A cryptocurrency company has lost a bid to force BC Hydro to provide the large amounts of power needed for its operations, defending the provincial government’s right to suspend power connections for new cryptocurrency miners. Conifex Timber Inc.

VANCOUVER – A cryptocurrency company has lost a bid to force BC Hydro to provide the large amounts of power needed for its operations, defending the provincial government’s right to suspend power connections for new cryptocurrency miners.

Conifex Timber Inc., a forestry company that diversified into cryptocurrency mining, had gone to the British Columbia Supreme Court to have the policy declared invalid.

But Judge Michael Tammen ruled Friday that the government’s move in December 2022 to suspend new cryptocurrency mining connections for 18 months was “reasonable” and not “unduly discriminatory.”

BC Hydro CEO Christopher O’Riley had told the court in an affidavit that Conifex’s proposed data centers would have consumed 2.5 million megawatt-hours of electricity each year.

This is enough to power and heat more than 570,000 apartments, according to data on the energy provider’s website.

Energy Minister Josie Osborne said when the policy was introduced that cryptocurrency mining consumes “huge amounts of electricity” by running high-powered computers 24 hours a day, but adds “very few jobs” to the local economy. .

In a statement released Monday, the company said it is “disappointed” with the court’s ruling and is considering filing an appeal.

“Conifex continues to believe that the provincial government is missing several available opportunities to improve energy affordability, accelerate technological innovation, strengthen the reliability and resilience of the energy distribution network in British Columbia, and achieve more inclusive economic growth,” it said. the statement said.

Before the provincial government halted new power connections for cryptocurrency miners, BC Hydro released a report outlining the “conundrum” they represent for the utility provider.

The report said energy demand from cryptocurrency mining operations would challenge clean energy and electrification goals as adoption of things like electric vehicles and heat pumps increases.

The report says bitcoin mining requires enough energy to power “a small country,” and moratoriums on cryptocurrency mining in China, Algeria and some US states “created a significant increase in energy demand.” in British Columbia for cryptocurrency mining operations.”

The court ruling said connection requests in recent years by cryptocurrency miners in BC “far exceeded” BC Hydro’s projections.

He said the government-mandated pause was in response to “the very real prospect that dedicating such a large proportion of the available electrical energy supply to one industry would leave less energy for other uses, which could result in higher costs for all industries.” other residential and commercial uses”. industry clients in BC”

This report by The Canadian Press was first published Feb. 5, 2024.

Darryl Greer, The Canadian Press


[ad_2]

Leave a Comment

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *