Australia: Power plant to be reactivated for bitcoin mining

A coal-fired power plant will be reactivated and a blockchain centre will operate within it.

The technology company named IOT Group wants to make the Hunter Valley Australia’s next technology mecca, having signed an agreement with Hunter Energy Corporation to reactivate an old coal-fired power plant that was shut down in 2014. During one year they aspire to establish a blockchain center at the Redbone electric silver facility, according to the local newspaper The Age.

The strategy includes offering wholesale power supply at a 20% discount starting in 2019 to install blokchain data center and mining equipment

Blockchain processes use a lot of computing power and energy. The reason why blockchain specialists are not in Australia is because the costs of electricity service are too high and it is not efficient. Supplying energy at a wholesale price could make blockchain operations attractive in Australia.


Jim Myatt, executive of Hunter Energy, also said that they are studying possibilities of implementing solar energy in their operations. Those who enjoy wholesale service will avoid the costs of transmission and maintenance of poles and cables by connecting directly to the power generator. It is estimated that the centre could consume between 10 and 20 megawatts of electricity.

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Although Australia has opened its doors to cryptocurrencies and companies that develop blockchain services, mining has not entered the country massively given the high prices for electricity consumption. In addition, they would have to deal with high temperatures during certain seasons of the year, which would increase consumption.

Different companies have migrated their operations to other jurisdictions more favorable for the mining of cryptocurrencies, mainly to countries with extended winter seasons that allow them to keep the temperature of the equipment at low and optimal levels, so they invest a lot less money in cooling.

Of course, this is an example of the support provided by the authorities of the state of New York, USA, in providing 15,000 kW for the operation of 180,000 miners in the city of Massena. The extended winter season and low costs could make this a popular destination for cryptocurrencies mining, a business that according to a recently released study may be more profitable than buying and selling cryptocurrencies.

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