British Columbia Premier David Eby’s government just fended off hydro energy price hikes. Plus, they might have stopped some old coal mines from re-opening.

On December 7 2022 as her first major act as Minister of Energy, Mines and Low Carbon Innovation Josie Osbourne said. “We are suspending electricity connection requests from cryptocurrency mining operators to preserve our electricity supply for people who are switching to electric vehicles and heat pumps, and for businesses and industries that are undertaking electrification projects that reduce carbon emissions and generate jobs and economic opportunities.”

Josie Osborne, BC Minister of Energy Mines and Low Carbon Innovation

Why this matters

Bitcoin is an energy hog. The technology underlying its mining involves vast numbers of computers making complex calculations. Keeping the computers cool currently uses more power than any one of Ireland, Austria, the Czech Republic, the Netherlands, most Canadian provinces or Norway, a country with 5.3 million people. My friend who is fighting the establishment of energy sucking data processing centres in Ireland tells me that if they are allowed there they will use ⅓ of her country’s power in 5 years.

Photo by: Irish Examiner

Locked out of China and some European countries and increasingly unpopular in India, the industry is desperate and willing to pay a premium. As a result coal mines that outlived their economic usefulness are being brought back into production in places that are still asleep at the switch like Australia, Kentucky, and Montana.

In New York the Hardin mine was basically dead and released 37 tonnes of carbon dioxide per quarter. When crypto started extracting coal again, CO2 emissions jumped to  187,000 tons in the second quarter of 2022. New York has since banned the use of old fossil fuel projects to power crypto.

Canada is attractive to the industry for our low cost power and our cold climate. For a while it looked as if BC Hydro was salivating at the thought of such high demand customers. But 5 days after Manitoba said no thanks, BC followed suit and both provinces refused all new permits for the next 18 months.

But be careful: The Minister also said “The suspension allows time for the provincial government and First Nations to create a crypto mining policy framework.”

In Manitoba 37 projects are to go ahead and in BC 13 have the green light.

What you can do with this information 

  1. Take a moment to feel good about this. It shows real leadership, required courage and was the right thing to do.
  2. Discourage the use of bitcoin and its crypto currency relatives.
  3. Let Minister Osborne and Premier Eby know you support the ban on permits but you want it made permanent. Ask them to prioritise how to figure out other pathways to reconciliation with the First Nations so they don’t need the devils bargain with crypto.
  4. Be a climate hero. Talk about it!

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