06-29-2020 icon

Canadian Cryptocurrency Mining Company Tries to Import Electricity from the US

By calvin
canadian cryptocurrency

A Canadian cryptocurrency mining company has raised eyebrows as reports surfaced of DMG Blockchain Solutions’ attempt to import electricity from the US. The organization’s intentions have raised concerns for a consumer advocacy group in the United States of America. 

Canadian Cryptocurrency Company Raises Capacity

DMG cited a need for more power as it works towards increasing its capacity. According to the organization,

“DMG is currently consuming approximately 15 megawatts on a steady load basis and has plans to grow to up to 60 megawatts in the next year with potentially larger amounts in the future as DMG may add new facilities.”

DMG sought authorization to transmit electricity to Canada, in pursuance of the Federal Power Act(“FPA”) Section 202(e) and Part 20, Subpart W of the United States Department of Energy’s Regulations. The application was made for blanket authority to transmit the energy over a period of 5 years.

Strong Opposition

The director of Public Citizen’s energy program wrote a letter stating that the amount of energy required by cryptocurrency mining operations could affect local power supplies in the United States. 

“U.S. cryptocurrency miners are struggling to meet their own power demands…

Several public utilities in neighboring Washington State have enforced moratoria on cryptocurrency mining operations, citing overcapacity of substations and increasing power demand.”

The director believes it is pertinent that the department approach the application by DMG with caution, explaining that the approval may result in a spike in similar applications for transfer of electricity for blockchain operations. 

Across the Ocean

Meanwhile, one of China’s main Bitcoin mining power sources has called for more blockchain firms to use hydropower for their operations. Ya’an issued a public guidance which shows that the government is looking to make the city a high-quality example for the consumption of excessive hydropower. 

According to the issued public guidance,

“On principle, blockchain companies should construct factories near power plants that have excessive power and are integrated with the State Grid,” the guidance says. “For blockchain companies that use electricity privately generated from power plants [without integration to the State Grid] should be rectified in due time.”