A fully integrated Bitcoin mining facility is set to be constructed near the Town of Fox Creek, bringing career opportunities and grid support with it.
Bitdeer Technologies Group, a Singapore-based global computing company, is embarking on its first venture in Canada with a Bitcoin mining facility that will be independently powered by a gas power plant.
Senior Project Manager Paul Hanson explained, Bitcoin mining is the process of solving complex algorithms to secure Bitcoin.
The company will also manufacture and supply its own mining equipment, giving it 100 per cent control of the project, something Hanson said is unique to the industry.
“No one else in the industry can do what we’re going to to do,” he said. “This is our first experience with generating our own power and that’s why it’s so exciting to us, because if we can do this —and we will, we will be successful at it — this tells a great story for the future and resets what this industry is all about.”
Although the facility will be independently powered, it’s secured approval for a 101 megawatt (MW) interconnection with the Alberta Electric System Operator. This means that in the event of an emergency power outage, the facility can pause its operations to provide temporary grid support to the town.
“I would think it would be an unforeseen emergency. Typically, we’ve never experienced any power issues out of the normal. Alberta’s pretty self-sufficient when it comes to snow storms, but you really don’t know what the future brings,” Fox Creek Mayor Sheila Gilmour said, commenting on the potential.
Hanson said Fox Creek was chosen for the company’s first Canadian location for a few reasons, including its climate, proximity to a strong workforce base and Alberta’s pro-business approach to development.
Cooler temperatures naturally contribute to cooling the mining equipment, helping it run more efficiently.
Otherwise, Bitdeer utilizes evaporative cooling, which uses water to keep its systems within an optimal temperature range. There’s a few ways this could be done, such as by installing a cistern and trucking in water, or connecting a water line to the local supply.
When asked how much water a facility like this could use, Hanson said, “Water consumption varies based on site conditions, including seasonality of weather conditions, e.g. humidity and wind and size. Moisture not evaporated by the cooling media is captured and reused by the cooling system, thus able to function within most municipal water systems. We expect to operate with what’s currently permissible at the Fox Creek site.”
Gilmour also doesn’t foresee the operation’s water needs being an issue or “affecting us in any way.” She said Bitdeer and the town have discussed that factor extensively.
She also affirmed that noise should not be an issue with the new development.
“After talking with them and learning more about their processes and how they do everything, we shouldn’t hear any noise off of them in the community,” Gilmour assured.
She described the location of the future facility as about 1.5 kilometres from the airport, across Highway 43.
When Bitdeer begins a project in a new area, Hanson said the company aims to become more than an employer, but also a community partner in the area.
This means hiring local companies and staff when possible. As the facility is built, Bitdeer will be looking to hire local contractors and labourers to assist with construction. Once everything is up and running, it will be a 24-7 operation and require full-time staffing, with hiring set to occur in stages.
Gilmour said it’s a great opportunity for locals as the company will offer on the job training to open positions to a wider pool of applicants.
“You’re not required to have a degree in computer sciences and things like that,” Hanson explained. “If you’ve got the will to work and the ambition to learn a new trade, we are more than excited to help, and teach, and train so you have good career development within the company.”
The company has begun clearing the land and expects to begin construction by the end of September or beginning of October. From there, Hanson estimates “complete energization” of the site will take 18-24 months.
According to the Alberta Major Projects dashboard, Bitdeer acquired the land and associated necessary permits at a $21.7 million value. The company estimates another US$90 million in plant construction and commissioning costs and US$30 million to build the data centre.
Bitdeer also has facilities in Norway, Bhutan, Texas, Washington and Tennessee.
