Iceland cuts power to new Bitcoin miners

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National Icelandic power company Landsvirkjun has cut the amount of power it will provide for some industries, including aluminum fuses and Bitcoin miners.

Representative of the island’s electricity service reported it has been forced to reduce energy allocations to southwestern Bitcoin miners and various industrial facilities due to a series of problems including a problem at a power plant, low hydro reservoirs and access to energy from an external supplier.

Mining operations have long has been attracted to the country because of its abundance of geothermal energy which is harvested to create a cheap and abundant supply of renewable energy. But as of December 7, all new applications for electricity from mining operations will be rejected, according to Landsvirkjun.

Hive Blockchain Technologies of Canada, Genesis Mining and Bitfury Holding are the three major Bitcoin mining companies that have opened facilities in Iceland.

For nearly a decade, miners have been trying to realize the promise of environmentally friendly Bitcoin mining in Iceland. In 2013, Cloud Hashing moved 100 miners to Iceland. In November 2017, Austrian company HydroMiner GmbH levita about $ 2.8 million in its initial currency proposal (ICO) to install mining platforms directly at Icelandic power plants.

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

Related: The UN’s COP26 climate change goals include emerging technologies and carbon taxes

The country’s aluminum smelting industry has been hit hardest by the distribution failure. Aluminum prices rose 1.1% on December 7 to reflect the bottle in supply created by recent growth in demand and the current electricity supply.

Globally, green blockchain initiatives were in full swing in 2021. A COP26 conference opined leaders in Glasgow, Scotland were dealing with energy-intensive Bitcoin mining. The conference saw the launch of the GloCha United Citizens Organization (UCO) for action on Climate Empowerment. It will use blockchain technology to advance climate change goals.