Tech 8 May 2018

Erik Gibbs

Aussie company eyes decommissioned plant for crypto mining operations

A decommissioned coal plant in Australia could soon be home to a large cryptocurrency mining operation in the land down under. Sydney-based IoT Group has signed an agreement with Royalti Blockchain Group, a reseller of mining hardware company Bitfury, through its IoT Blockchain subsidiary. The agreement is a “conditional binding terms sheet,” hinging on the approval of the use of the plant.

IoT made the announcement in a report submitted to the Australian Securities Exchange (ASX) on Monday. The company hopes to develop a “Blockchain Applications Complex (BAC)” in Hunter Valley that would be powered by the decommissioned Redbank power station. IoT has already partnered with Hunter Energy in an effort to have Hunter leverage its position to acquire the power station.

The deal is reported to be worth around US$142 million and would see Royalti installing Bitfury mining equipment at the plant. IoT and Hunter would supply 20 megawatts of power for a minimum of five years at a cost of US$0.08 per kilowatt-hour (KWh). The rate represents a wholesale rate, and is between US$0.22 to US$0.33 less than the normal KWh retail rate.

The Redbank Power Station shut down in 2014. If the mining operations are to get underway, Hunter has to first acquire and recommission the plant. According to IoT Blockchain, “Investors should note that the Terms sheet is subject to and conditional upon the satisfaction or waiver of certain conditions precedent, including the completion by Hunter Energy of its proposed acquisition of all right, title and interest in the Redbank Power Station to the absolute satisfaction of IoT…If Hunter does not complete its acquisition…or if competition does not occur under the terms sheet…the transaction…will not proceed.”

If the acquisition is successful, it could turn Hunter Valley into a “Silicon Valley” for Australia. It has the potential to draw numerous blockchain companies to the area for the low energy rates, which could, in turn, start an entirely new innovation sector in the country. Hunter is already working on recommissioning the plant and hopes to flip the power switch during the first quarter of next year. However, like IoT, it cautions that there are still many factors that need to be addressed, and that “investors should be aware of these risks.”

As of now, the deadline to initiate operations is October 1, 2018. If the legally binding Power Purchase Agreement cannot be effected, the deal will be cancelled.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

COMMENT

latest news

How Metanet creates an immutable Internet

Tech 15 February 2019

How Metanet creates an immutable Internet

Metanet and Bitcoin were roughly conceived “in the depths of the late 90s” from the concept of an economically incentivized Internet, according to nChain Chief Scientist Dr. Craig Wright.

Read More
HSBC slashes forex costs with blockchain

Tech 15 February 2019

HSBC slashes forex costs with blockchain

The firm confirmed it had reduced costs for its forex business by as much as 25%, in what analysts describe as an example of the importance of distributed ledger technology to banks and their bottom lines.

Read More
UC Berkeley launches blockchain accelerator for startups

Tech 14 February 2019

UC Berkeley launches blockchain accelerator for startups

The University of California, Berkeley recently announced the launch of a new blockchain-focused accelerator, the Berkeley Blockchain Xcelerator for blockchain startups.

Read More