Second crypto mine ‘continues’ despite NB Power freeze, company says

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The developer of a second cryptocurrency mine in New Brunswick says the project is still underway, despite concerns from government and NB Power that the industry would put a strain on the provincial power grid.

Chief Fuels said in a news release Thursday that its plans are “on schedule” and the facility will open in Grand Falls in early 2024.

The company said it had hired a contractor to expand the mine’s electrical substation to draw power from the NB Power grid, which could overwhelm utility concerns if more crypto mining takes place. -currency were also on the system.

In March 2022, Prime Minister Blaine Higgs signed a cabinet order approving the utility’s refusal to serve new crypto mines.

“The benefit you get from it versus energy use just wasn’t a project that made sense for the province,” Higgs said Friday.

Premier Higgs signed an Order in Council last year approving NB Power’s refusal to maintain new crypto mines. (Radio-Canada)

But it appears the utility signed an agreement to power the second Grand Falls generating station before the freeze was put in place.

Spokesperson Dominique Couture would not comment on Chief Fuels’ proposal by name, but said “prior to the 2021 pause taking effect, two customers completed their interconnection agreements.”

Fuels CEO Michael Scully declined an interview request from CBC News and did not respond to follow-up emailed questions.

These “mines” operate thousands of computers around the clock to perform millions of transactions and earn cryptocurrency, consuming large amounts of electricity.

System demand is a concern for NB Power because many of its generating stations face uncertain future or reliability issues.

The utility came close to being unable to meet an unprecedented peak demand for electricity during a cold snap in February.

A bitcoin mine owned by Hive Blockchain Technologies is already in operation in Grand Falls. It uses 70 megawatts of electricity per year.

Hive Blockchain Technologies in Saint-André has several working bitcoin miner warehouses. (Shane Fowler/CBC News)

Chief Fuels said in its statement that it had reduced its original plan for a 50 megawatt mine to 26 megawatts “due to various business considerations.”

He said he “informed” NB Power of this change.

No comments from Grand Falls

The mine was announced in November 2021 when Taal Distributed Information Technologies Inc. announced that it would buy Chief Fuels and locate the mine in a former McCain Foods fertilizer plant in Grand Falls.

The combined annual electricity consumption of the Hive and Taal mines, 96 megawatts, is close to the annual generation of the small modular nuclear reactor model developed by Arc Clean Energy of Saint John.

A Grand Falls town official said last week she doesn’t know why the Taal-Chief Fuels mine hasn’t opened yet.

Economic Development Director France LeMoignan said the city received the Chief Fuels press release on Thursday.

“We cannot comment on the situation until a permit has been issued by the municipality’s planning department,” she said in an email.

She said “discussions” have taken place with the city “but no official document has yet been released.”

Chief Fuels describes itself as a predominantly Indigenous fuels and lubricants company “affiliated” with Michaud Petroleum, a Grand Falls company.

On its website, Chief Fuels lists its address on Waasis Road in Oromocto First Nation.

Taal said in a November 2021 press release that he was acquiring all shares of Chief Fuels, allowing him to open his crypto mine in a 5,600 square meter warehouse in Grand Falls.

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