[Crypto]Miner Reopens Coal-Fired Power Plant in Cheap Energy Quest

[Computer Nerd Kev]

Miner Reopens Coal-Fired Power Plant in Cheap Energy Quest
David Floyd, Apr 12, 2018.
- https://www.coindesk.com/miner-reopens-coal-fired-power-plant-in-cheap-energy-quest/

"An Australian technology firm will reopen a coal-fired power
plant just to run a blockchain, according to a Tuesday report.

IOT Group, an Australian technology firm, has partnered with Hunter
Energy to recommission the Redbank power plant - which was
shuttered in 2014 - to reduce its energy costs, a local media
outlet reported. The companies expect that IOT's new energy bill
will be reduced by 20 percent through using the facility, compared
to its current costs.

IOT's decision to go "behind the grid" is part of a larger trend
within the cryptocurrency sector, according to a company statement.
Proof-of-work blockchains, such as bitcoin and ethereum, consume
massive amounts of energy through mining due to the mathematical
problems the network must solve." ...

[Sylvia Else]

Post by Computer Nerd Kev
Miner Reopens Coal-Fired Power Plant in Cheap Energy Quest
David Floyd, Apr 12, 2018.
- https://www.coindesk.com/miner-reopens-coal-fired-power-plant-in-cheap-energy-quest/
"An Australian technology firm will reopen a coal-fired power
plant just to run a blockchain, according to a Tuesday report.
IOT Group, an Australian technology firm, has partnered with Hunter
Energy to recommission the Redbank power plant - which was
shuttered in 2014 - to reduce its energy costs, a local media
outlet reported. The companies expect that IOT's new energy bill
will be reduced by 20 percent through using the facility, compared
to its current costs.
IOT's decision to go "behind the grid" is part of a larger trend
within the cryptocurrency sector, according to a company statement.
Proof-of-work blockchains, such as bitcoin and ethereum, consume
massive amounts of energy through mining due to the mathematical
problems the network must solve." ...

I suppose it's no more warped than expending energy and resources to dig
up gold only to bury the stuff again somewhere else.

Sylvia.

[b***@topmail.co.nz]

Post by Computer Nerd Kev
Miner Reopens Coal-Fired Power Plant in Cheap Energy Quest
David Floyd, Apr 12, 2018.
- https://www.coindesk.com/miner-reopens-coal-fired-power-plant-in-cheap-energy-quest/

Pauline Hanson must be in raptures! Coal has risen from the grave!

[RS Wood]

On Tue, 19 Jun 2018 04:31:19 +0000 (UTC)

Post by Computer Nerd Kev
Miner Reopens Coal-Fired Power Plant in Cheap Energy Quest
David Floyd, Apr 12, 2018.
- https://www.coindesk.com/miner-reopens-coal-fired-power-plant-in-cheap-energy-quest/
"An Australian technology firm will reopen a coal-fired power
plant just to run a blockchain, according to a Tuesday report.
IOT Group, an Australian technology firm, has partnered with Hunter
Energy to recommission the Redbank power plant - which was
shuttered in 2014 - to reduce its energy costs, a local media
outlet reported. The companies expect that IOT's new energy bill
will be reduced by 20 percent through using the facility, compared
to its current costs.

Too depressing a subject for me to dredge up the will to actually read
the article, but in the USA at least, coal is now one of the most
expensive forms of energy, certainly relative to natural gas. Wonder
what energy they were using before, that coal is cheaper: hamsters on
treadmills?

OK, F it ... I read the article. No answers. Article points out
Quebec and Washington State's cheap hydro is advantageous. There is NO
F'ing way Australian coal can be cheaper than that. These guys are
either barking up the wrong tree, or it's a fun sensational headline.
But the economics don't make sense.

Here's one clue: a bungled transition to clean energy gives Australia the world's priciest power, and coal actually /is/ cheaper.
https://www.bloomberg.com/news/articles/2017-10-05/how-energy-rich-australia-ended-up-with-world-s-priciest-power

This post turned into a stream-of-consciousness. Sorry about that.

[Computer Nerd Kev]

Post by RS Wood
On Tue, 19 Jun 2018 04:31:19 +0000 (UTC)

Post by Computer Nerd Kev
Miner Reopens Coal-Fired Power Plant in Cheap Energy Quest
David Floyd, Apr 12, 2018.
- https://www.coindesk.com/miner-reopens-coal-fired-power-plant-in-cheap-energy-quest/

Too depressing a subject for me to dredge up the will to actually read
the article, but in the USA at least, coal is now one of the most
expensive forms of energy, certainly relative to natural gas. Wonder
what energy they were using before, that coal is cheaper: hamsters on
treadmills?
OK, F it ... I read the article. No answers. Article points out
Quebec and Washington State's cheap hydro is advantageous. There is NO
F'ing way Australian coal can be cheaper than that. These guys are
either barking up the wrong tree, or it's a fun sensational headline.
But the economics don't make sense.
Here's one clue: a bungled transition to clean energy gives Australia
the world's priciest power, and coal actually /is/ cheaper.
https://www.bloomberg.com/news/articles/2017-10-05/how-energy-rich-australia-ended-up-with-world-s-priciest-power
This post turned into a stream-of-consciousness. Sorry about that.

Well the stream was flowing in the right direction at least. It might
make more sense to think in terms of the operating costs that the
power companies incur (or perceive they might incur) and compare
that to an independant operator who only has to worry about one
power plant and no distribution network.

There's some more detail at the original Australian newspaper
article:
https://www.theage.com.au/business/the-economy/blockchain-to-get-behind-the-grid-in-landmark-australian-deal-20180409-p4z8j3.html

And there's the company's statement, which I skimmed over:
https://www.asx.com.au/asxpdf/20180409/pdf/43t1lf63rkhc15.pdf

Coal is also cheap in Australia - we've got lots of it and even
like to build power plants right next to where it's dug up. The
question of whether we _should_ and the indecision at a
government level over whether energy companies will be allowed
to keep burning the stuff in the future is supposably what has
lead to our pricy power.

I guess put all that together and it might work out that it's
cheap for them to mine bitcoins here, but expensive for me to
run my kettle.

[b***@topmail.co.nz]

Post by RS Wood
OK, F it ... I read the article. No answers. Article points out
Quebec and Washington State's cheap hydro is advantageous. There is NO
F'ing way Australian coal can be cheaper than that. These guys are
either barking up the wrong tree, or it's a fun sensational headline.
But the economics don't make sense.

I presume this power station has been written off, so the operator can just
crank it up with a skeleton staff, and no maintenance, so that the costs
are lower than a bona fide plant.