Future

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The New Brunswick government is putting a halt to supplying power to new cryptocurrency mining ventures. Energy Minister Mike Holland introduced legislation aimed at transforming a temporary freeze into a permanent ban, according to <a href="https://www.cbc.ca/news/canada/new-brunswick/province-banning-nb-power-selling-electricity-crypto-mines-1.7014210" rel="noopener noreferrer nofollow">cbc</a>.&nbsp;
The legislation comes after the provincial utility, N.B. Power, faced increasing scrutiny over its ability to generate enough <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/" rel="noopener noreferrer nofollow">electricity</a> for both existing customers and burgeoning industries like crypto mining.
Initially, the government had issued a temporary moratorium in March 2022. This decision followed large-scale requests for <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/" rel="noopener noreferrer nofollow">electricity</a> supply from the cryptocurrency sector. Holland explained that the sector's huge demand for electricity couldn't be met without compromising current rate bases. Consequently, the government believes it must prioritize its existing commitments and future needs.
Two existing operations, a 70-megawatt bitcoin mine by Hive Blockchain Technologies and a proposed facility by Chief Fuels, had already secured their electricity supply before the moratorium. Their combined consumption alone would nearly match the yearly generation of a small modular nuclear reactor model under development in the region. To put it into perspective, that's equivalent to two and a half months of output from N.B. Power's Belledune generating station.
The crypto mining operations have posed a unique challenge to N.B. Power. Twice this year, the utility came dangerously close to failing to meet electricity demands with its existing infrastructure. Holland highlighted that they were "at the line right there now," emphasizing the precarious situation. The utility also has to consider federal climate policies and aging power stations in its long-term planning, making the situation more complex.
While opposition Liberal Leader Susan Holt acknowledges the need for caution given the sector's minimal job creation and significant power consumption, she questions the fairness of the decision. She asks what criteria determine that crypto mining, specifically, should be denied electricity, and which sectors might be next.

New Brunswick (Canada) Shuts Down Future Electricity Supply to Crypto Mines Amid Capacity Concerns

Ultramining_Eng

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