Kentucky regulator denies plan for subsidizing crypto mining facility

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The Public Service Fee of the state of Kentucky has denied a proposed contract that might have allowed a mining agency to obtain a reduced fee on electrical energy offered by the ability firm.

In an Aug. 28 order, the fee denied a contract between Ebon Worldwide and the Kentucky Energy Firm that concerned a $50 million funding in a crypto mining facility within the metropolis of Louisa. In response to the submitting, Ebon deliberate to run a 100-megawatt (MW) mining operation till 2024, then enhance the load to 250 MW.

The main points of the proposed contract, which had been partially redacted, included Kentucky Energy offering Ebon a reduced fee for service over 10 years. The fee introduced in December 2022 that it planned to review the deal between Ebon and Kentucky Energy.

Environmental teams Earthjustice and Greenpeace lauded the fee’s determination as a victory for common power shoppers in Kentucky. Joshua Archer, the Bitcoin marketing campaign lead for Greenpeace USA, claimed incentivizing crypto mining corporations to arrange store within the state would have burdened taxpayers and contributed to local weather change.

Associated: Cambridge Bitcoin Electricity Consumption Index updated to reflect hardware distribution and hash rate increases

The state of Kentucky is among the main Bitcoin (BTC) mining hubs in the USA, alongside Texas, Georgia and New York. Environmental organizations in these areas have pushed for restrictions and bans on crypto mining, leading to New York signing a proof-of-work mining moratorium into legislation in November 2022 and a invoice removing incentives for miners making it by the Texas Senate in April.

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