Company plans to build own power source for crypto mining
By COLLIN GALLANT on September 24, 2022.
https://www.medicinehatnews.com@MedicineHatNews Alberta’s latest cryptocurrency mine will be set up near Tilley, the latest in a number of applications to place dataprocessing centres on or near Alberta natural gas plants in order to produce their own power. The application – to install six natural gas-fired generators near the Trans-Canada Highway about 15 kilometres east of Brooks – was filed Sept. 2 on behalf of Newbit Technology, which describes itself as a financial technology (fintech) firm based in Singapore. It was approved by regulators on Sept. 14, stating it will be in service on Jan. 31, 2023. The site’s legal land description is adjacent to the Campus Energy gas plant, though the specific site is owned by the Eastern Irrigation District. Campus Energy, a privately held utility company, told the News it does not comment on supply agreements, but is exploring how it could benefit from increasing interest in the cryptocurrency sector by becoming its own power producer. Last spring the government passed legislation allowing companies to build utility-scale power production facilities on industrial sites with unlimited capacity for internal use as well as the ability to export power onto the grid. That could help companies fold renewable energy into their operations, some environmentalists have said, while the Energy Ministry argues it will help avoid some costs of upgrading or running new power lines and systems. However, the regulations do not distinguish between green energy and fossil-fuel power production. The power plant at Tilley will not be connected to the grid, but will not draw from it either, theoretically adding economic activity without a cost to the power grid. In August, Associate Minister of Natural Gas and Electricity Dale Nally told the News self-supply system is a “significant investment-attraction tool that many industry participants are looking forward to taking part in. “We took an approach that encouraged new generation capacity and would increase the competitiveness of our province’s electricity grid,” he wrote in a statement. Environmental observers said at the time adding fossil-fuel power production would undermine carbon emissions targets. For years rumours abounded that crypto firms were approaching natural gas producers about co-mingling operations – giving the patch companies lease revenue and perhaps better prices on fuel, and fintech companies low-priced power. Mark Dorin, a consultant who represents landowners on energy issues, told the News interest is again spiking, but the arrangement can be hard to accomplish, especially at small or single wellsites. He told the News it’s impossible under the regulations to sub-lease land controlled to exploit subsurface rights. Similar rules apply on facilities. At major gas plants “it’s not uncommon, but not all that common” that a petroleum production company own the land where a gathering or compressor stations is located, giving the ability to alter or expand the site. The News revealed in August that junior natural gas company Mojek Resources plans to build a 100-megawatt power plant at a remote gas battery it owns north of Grande Prairie to host a cryptomining company. The size of the facility would be enough to power a mid-sized city. At Tilley, six generator units would produce a total of 8.9 megawatts, about 10 per cent less than an initial proposal in July to install seven generators, but govern one to produce less. That, the company argued, would put it under regulations requiring a more strict application process for power plants with a capacity greater than 10 megawatts. 21-20
