A consumer advocacy group says a bid to import US electricity for a Canadian cryptocurrency mining company raises a number of serious concerns.
Canada-based DMG Blockchain Solutions is applying for permission from the US Department of Energy (DOE) to source electricity from its neighbor to the south, citing a need for more power as it continues to increase its capacity.
“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.”
In a letter dated June 25th, Public Citizen’s energy program director Tyson Slocum and climate program director David Arkush tell the DOE that the amount of energy cryptocurrency mining requires could potentially 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 group urges the department to proceed with caution, and if possible deny DMG’s application.
“This appears to be the first-ever application to export power by a cryptocurrency miner, and approval may result in a rush of similar applications. For these reasons and more, DMG’s application raises serious, potentially fatal concerns.”