Iceland’s national electrical company Landsvirkjun has reduced the amount of electricity it will supply to several industries, including aluminum smelters and bitcoin miners.

A spokesman for the island’s power company said they had to cut off power distribution between bitcoin miners in the southwest and several industrial companies due to a number of issues, including a power plant problem, low reservoir water levels and access to power from an external supplier. …

The country has always been attracted to the mining industry due to the abundance of geothermal energy, which is used to create a cheap and abundant source of renewable energy. But from December 7 for an unknown period, any new power requests from miners will be rejected, Landsverkion said.

Canada’s Hive Blockchain Technologies, Genesis Mining and Bitfury Holding are the three major bitcoin mining companies that have established operations in Iceland.

For almost a decade, miners have been trying to realize the potential for green bitcoin mining in Iceland. In 2013, Cloud Hashing moved 100 miners to Iceland. In November 2017, Austrian HydroMiner GmbH raised around $ 2.8 million through its first coin offering (ICO) to install mining rigs directly at Icelandic power plants.

Less than 1% of the country’s electricity is generated from non-renewable sources.

Related: UN COP26 climate targets include new taxes on technology and carbon emissions.

The country’s aluminum industry has been hardest hit by the unrest in distribution. Aluminum prices rose by 1.1% on December 7, reflecting the bottleneck in supply caused by the recent increase in demand and the current shortage of electricity.

Globally, green blockchain initiatives are becoming trendy in 2021. COP26 influencers in Glasgow, Scotland discussed energy-intensive bitcoin mining. The conference launched the GloCha United Civil Society Organization (UCO), which focuses on climate empowerment. Blockchain technology will be used to achieve the climate goals.

Source: CoinTelegraph

LEAVE A REPLY