The cryptocurrency industry has scored another first, with a Junior Senator from Montana, Steve Daines lobbying against the planned closure of a coal-fired power plant in Rosebud County, stating that the closure of the plant can harm the growing crypto mining industry in Montana.
According to reports, Colstrip Power Plat’s largest owner will be ready to close the facility by 2027, nearly 20 years before the anticipated closure. The closure targets the four-unit power plants latest generators, units 3 and 4. The two older units are slated for closure by 2022, just four years from now.
A Dilemma Arises
With the growth of cryptocurrency and the need for adoption, cryptocurrency mining takes place where there is cheap power. Most of the big mining hubs with access to electricity opt to make use of renewable energy.
Crypto mining ventures seek places that have renewable energy due to the high energy consumption that is associated with mining of cryptocurrency. Most of these ventures make use of geothermal and hydroelectric energy.
In Montana, the huge deposits of coal a several plants that rely on coal supply cheap electricity that attracts many mining ventures. Senator Daines states that this practice needs to be encouraged instead of getting discouraged, as the ventures represent a growth industry that has immediate long-term prospects for the state.
He goes on to say:
“As the demand for Bitcoin miners increases and the supply of cheap, reliable electricity from coal generation decreases, this could pose a threat to the expansion of Bitcoin generation and an even greater threat to energy supply and prices for Montana as a whole.”
Why Montana is Attractive to Crypto Miners
It can be recalled that Montana is one of the most appealing states for miners to set up their ventures because it offered permission for crypto mining operations before any other state could do so.
Last year, Governor Steve Bullock announced that they were going to allocate $416,000 to Project Spokane.
Besides the low energy costs, the state’s low temperatures are ideal for miners that need to save cooling costs, because mining hardware needs controls to keep them from overheating.
Elsewhere in New York, it is seen that the mining operations might help restore the Valatie Falls hydroelectric dam for use for crypto mining operations.