Crypto Mining Facilities Near Bemidji
Many individuals have inquired about the new modules buzzing in electrical substations located to the north and west of Bemidji.
Impact of Crypto Mining on Energy Consumption
These structures are crypto mining facilities that utilize vast amounts of electricity, benefiting from the proximity to direct power sources from transmission lines extending from central North Dakota. However, the substantial electricity they consume poses risks to both the environment and public health.
The Crypto Mining Process
Crypto mining involves generating cryptocurrency, a venture in which both individuals and companies can participate. Typically, it is a single operator who profits, while local job creation is minimal or nonexistent. A recent study highlighted that Chinese entrepreneurs are involved in mining across at least twelve U.S. states, reaping financial rewards while increasing atmospheric pollutants from heightened electricity consumption.
Effects on Local Electric Cooperatives
Crypto mining can have implications for electrical cooperatives. Our local electric cooperative is among those supplying electricity to enable crypto miners to compete effectively in this digital currency market. These miners spend on powering and cooling their numerous computers, which carry the risk of overheating and potentially catching fire.
New Dynamics in Electricity Markets
This shift to crypto mining introduces dynamics to the electricity market that were not previously present. We generally experience peak and off-peak electricity periods. Crypto operations can utilize off-peak times, thereby assisting in maintaining optimal power plant efficiency as they strive to meet evening peak demands typically between 4 and 7 p.m.
Environmental Concerns
Every household contributes a smaller carbon footprint; however, a single crypto mining operation can emit as much carbon as thousands of homes. Currently, crypto mining in the United States consumes about 2.3% of all electricity, comparable to the total consumption of a nation like Poland. While these facilities purchase power from substations, enabling generation plants to operate closer to peak production levels, the adverse environmental effects from coal-burning power generation remain a pressing issue. Each plant can release significant amounts of mercury and other harmful by-products annually, exacerbating public health risks and contributing to climate change.
Future Directions for Electric Cooperatives
Allowing crypto mining to sustain generator activity while each coal plant contributes to escalating atmospheric carbon levels raises serious concerns. Despite declining household electricity demand, overall consumption continues to rise, complicating the transition away from coal. Some plants are working towards capturing carbon emissions, but many solutions remain in developmental stages.
Charlie Parson is a member of the Citizens’ Climate Lobby organization. For more details, please visit CitizensClimateLobby.org.
