A coal power plant in Hunter Valley, Australia is reported to be re-opening after having been closed for four years apparently just to power cryptocurrency mining operations.
Hunter Energy, owner of the Redbank coal power plant, will be partnering with local tech company IOT Group to recommission the plant. IOT Group will be setting up a cryptocurrency mining operation as soon as the plant produces electricity again by 2019.
The re-establishment of the 151 Megawatt plant is expected to drastically reduce IOT Group’s mining expenses. As partners, Hunter Energy will be selling electricity to the tech company at a cheaper, discounted price.
From Coal to Crypto
The promise of cheaper electricity costs could potentially attract more crypto mining companies to the area. Hunter Valley would see an increase in mining companies very quickly when the plant goes back into business.
Plans of re-establishing a coal power plant will not go unnoticed, especially by environmentalists. The large volumes of carbon dioxide released into the atmosphere by these plants contribute to global warming and climate change.
It also should be noted that Australia had pledged at the COP21 Summit in Paris to close down all its coal power plants. Re-opening the Redbank coal power plant may be met with concerns from the government.