U.S. carbon rules could slam door on new coal plants

NB Power Pulp and Paper Subsidies lower electricity rates for six New Brunswick mills using firm power benchmarks and interruptible discounts, while government mandates, utility debt, ratepayer impacts, and competitiveness pressures shape provincial energy policy.

Key Points

Provincial mandates that buy down firm electricity rates for six mills to a national average, despite NB Power's debt.

✅ Mandated buy-down to match national firm electricity rates

✅ Ignores large non-firm interruptible power discounts

✅ Raises equity concerns amid NB Power debt and rate pressure

An effort to fix NB Power's struggling finances that is supposed to involve a look at "all options" will not include a review of the policy that requires the utility to subsidize electricity prices for six New Brunswick pulp and paper mills, according to the Department of Natural Resources and Energy Development.

The program is meant "to enable New Brunswick's pulp and paper companies have access to competitive priced electricity,"  said the department's communications officer Nick Brown in an email Monday 

"Keeping our large industries competitive with other Canadian jurisdictions, amid Nova Scotia rate hike opposition debates elsewhere, is important," he wrote, knocking down the idea the subsidy program might be scrutinized for shortcomings like other NB Power expenses.

Figures released last week show NB Power paid out $9.7 million in rate subsidies to the mills under the program in the fiscal year ended in March 2021, even though the utility was losing $4 million for the year and falling deeper into debt, amid separate concerns about old meter issues affecting households.

Subsidies went to three mills owned by J.D. Irving Ltd. including two in Saint John and one in Lake Utopia, two owned by the AV group in Nackawic and Atholville and the Twin Rivers pulp mill in Edmundston.

The New Brunswick government has made NB Power subsidize pulp and paper mills like Twin Rivers Paper Company since 2012, and is requiring the program to continue despite financial problems at the utility. (CBC)
It was NB Power's second year in a row of financial losses, while it is supposed to pay down $500 million of its $4.9 billion debt load in the next five years to prepare for the refurbishment of the Mactaquac dam, a burden comparable to customers in Newfoundland paying for Muskrat Falls elsewhere under separate policies, under a directive issued by the province

NB Power president Keith Cronkhite said he was "very disappointed" with debt increasing last year instead of  falling and senior vice president and chief financial officer Darren Murphy said everything would be under the microscope this year to turn the utility's finances around.  

"We need to do better," said Murphy on Thursday

"We need to step back and make sure we're considering all options, including approaches like Newfoundland's ratepayer shield agreement on megaproject overruns, to achieve that objective because the objective is quickly closing in on us."

However, reviewing the subsidy program for the six pulp and paper mills is apparently off limits.

The subsidy program requires NB Power to buy down the cost of "firm" electricity bought by pulp and paper mills to a national average that is calculated by the Department of Natural Resources and Energy Development.

Last year the province declared the price mills in New Brunswick pay to be an average of  7.536 cents per kilowatt hour (kwh).  It is higher than rates in five other provinces that have mills, which the province points to as justification for the subsidies, even as Nova Scotia's 14% rate hike approval highlights broader upward pressure, although the true significance of that difference is not entirely clear.

In British Columbia, the large forest products company Paper Excellence operates five pulp and paper mills which are charged 17.2 per cent less for firm electricity than the six mills in New Brunswick.

The Paper Excellence Paper Mill in Port Alberni, B.C. pays lower electricity prices than mills in New Brunswick, a benefit largely offset by higher property taxes. It's a factor New Brunswick does not count in calculating subsidies NB Power must pay. (Paper Excellence)
However, local property taxes on the five BC mills are a combined $7.8 million higher than the six New Brunswick plants, negating much of that difference.

The province's subsidy formula does not account for differences like that or for the fact New Brunswick mills buy a high percentage of their electricity at cheap non-firm prices.

Not counting the subsidies, NB Power already sells high volumes of what it calls interruptible and surplus power to industry at deep discounts on the understanding it can be cut off and redeployed elsewhere on short notice when needed.

Actual interruptions in service are rare.  Last year there were none, but NB Power sold 837 million kilowatt hours of the discounted power to industry at an average price of 4.9 cents per kwh.   

NB Power does not disclose how much of the $22 million or more in savings went to the six mills, but the price was 35 per cent below NB Power's posted rate for the plants and rivaled firm prices big mills receive anywhere in Canada, including Quebec.

Asked why the subsidy program ignores large amounts of discounted interruptible power used by New Brunswick mills in making comparisons between provinces, Brown said regulations governing the program require a comparison of firm prices only.

"The New Brunswick average rate is based on NB Power's published large industrial rate for firm energy, as required by the Electricity from Renewable Resources regulation," he wrote.

The subsidy program itself was imposed on NB Power by the province in 2012 to aid companies suffering after years of poor markets for forest products following the 2008 financial collapse and recession.  

Providing subsidies has cost NB Power $100 million so far and has continued even as markets for pulp products improved significantly and NB Power's own finances worsened.

Report warned against subsidies
NB Power has never directly criticized the program, but in a matter currently in front the of the New Brunswick Energy and Utilities Board looking at how NB Power might restructure its rates, including proposals such as seasonal rates that could prompt backlash, an independent consultant hired by the utility suggested rate subsidies to large export oriented manufacturing facilities, like pulp and paper mills, is generally a poor idea.

"We do not recommend offering subsidies to exporters," says the report by Christensen Associates Energy Consulting of Madison, Wis.

"There are two serious economic problems with subsidizing exports. The first is that the benefits may be less than the costs. The second problem is that subsidies tend to last forever, even if the circumstances that initially justified the subsidies have disappeared."

The Christensen report did not directly assess the merits of the current subsidy for pulp and paper mills but it addressed the issue because it said in the design of new rates "one NB Power business customer has raised the possibility that their electricity-intensive business ought to be granted subsidies because of the potential to generate extra benefits for the Province through increases in their exports"

That, said Christensen, rarely benefits the public.

"The direct costs of the subsidies are the subsidies themselves, a part of which ends up in the pockets of out-of-province consumers of the exported goods," said the report.  

"But there are also indirect costs due to the fact that the subsidies are financed through higher electricity prices, which means that other electricity customers have less money to spend on services provided by local businesses, thus putting a drag on the local economy."

The province does not agree.

Asked whether it has any studies or cost-benefit reviews that show the subsidy program is a net benefit to New Brunswick, the department cited none but maintained it is an important initiative, even as elsewhere governments have offered electricity bill credit relief to ratepayers.

"The program was designed to give large industrial businesses the ability to compete on a level energy field," wrote Brown.
 

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Cal ISO Flex Alert urges Southern California energy conservation as a Stage 2 emergency strains the power grid, with potential rolling blackouts during peak hours from 3 to 10 p.m., if demand exceeds supply.

Key Points

A statewide call to conserve power during high demand, issued by the grid operator to prevent rolling blackouts.

✅ Stage 2 emergency signals severe grid strain

✅ Peak Flex Alert hours: 3 to 10 p.m. statewide

✅ Set thermostats to 78 and avoid major appliances

Residents and businesses across Southern California were urged to conserve power Tuesday afternoon amid ongoing electricity inequities across the state as the manager of the state’s power grid warned rolling blackouts could be imminent for some power customers.

The California Independent System Operator (Cal ISO), which manages the state power grid, declared a Stage 2 emergency as of 2:30 p.m., indicating severe strain on the electrical system, similar to a recent grid alert in Alberta that relied on reserves.

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Rolling blackouts for some customers could occur in a Stage 3 emergency, distinct from the intentional shut-offs some utilities use to reduce wildfire risk.

Cal ISO issued a statewide Flex Alert in effect from 3 to 10 p.m. Tuesday and Wednesday, with conservation considered especially critical during those hours, a concern heightened by pandemic-era grid operations this year.

Officials told reporters rolling blackouts might be avoided Tuesday evening if residents repeat the level of conservation seen Monday.
“If we can get the same sort of response we got yesterday, we can minimize this, or perhaps avoid it altogether,” Cal-ISO President/CEO Steve Berberich said, noting that some operators have even planned staff lockdowns during COVID-19 to maintain reliability.

Cal-ISO controls roughly 80% of the state’s power grid through Southern California Edison, Pacific Gas and Electric Co., with the utility recently restoring power after shut-offs in affected communities, and San Diego Gas & Electric.

Residents are urged to set thermostats at 78 in the afternoon and evening hours and avoiding the use of air conditioning and major appliances during the Flex Alert hours, as utilities like PG&E prepare for winter storms to improve resilience.

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AI Load Forecasting for Utilities leverages machine learning, smart meters, and predictive analytics to balance energy demand during COVID-19 disruptions, optimize grid reliability, support demand response, and stabilize rates for residential and commercial customers.

Key Points

AI predicts utility demand with ML and smart meters to improve reliability and reduce costs.

✅ Adapts to rapid demand shifts with accurate short term forecasts

✅ Optimizes demand response and distributed energy resources

✅ Reduces outages risk while lowering procurement and operating costs

The spread of the novel coronavirus that causes COVID-19 has prompted state and local governments around the U.S. to institute shelter-in-place orders and business closures. As millions suddenly find themselves confined to their homes, the shift has strained not only internet service providers, streaming platforms, and online retailers, but the utilities supplying power to the nation’s electrical grid, which face longer, more frequent outages as well.

U.S. electricity use on March 27, 2020 was 3% lower than it was on March 27, 2019, a loss of about three years of sales growth. Peter Fox-Penner, director of the Boston University Institute for Sustainable Energy, asserted in a recent op-ed that utility revenues will suffer because providers are halting shutoffs and deferring rate increases. Moreover, according to research firm Wood Mackenzie, the rise in household electricity demand won’t offset reduced business electricity demand, mainly because residential demand makes up just 40% of the total demand across North America.

Some utilities are employing AI and machine learning for the energy transition to address the windfalls and fluctuations in energy usage resulting from COVID-19. Precise load forecasting could ensure that operations aren’t interrupted in the coming months, thereby preventing blackouts and brownouts. And they might also bolster the efficiency of utilities’ internal processes, leading to reduced prices and improved service long after the pandemic ends.

Innowatts
Innowatts, a startup developing an automated toolkit for energy monitoring and management, counts several major U.S. utility companies among its customers, including Portland General Electric, Gexa Energy, Avangrid, Arizona Public Service Electric, WGL, and Mega Energy. Its eUtility platform ingests data from over 34 million smart energy meters across 21 million customers in more than 13 regional energy markets, while its machine learning algorithms analyze the data to forecast short- and long-term loads, variances, weather sensitivity, and more.

Beyond these table-stakes predictions, Innowatts helps evaluate the effects of different rate configurations by mapping utilities’ rate structures against disaggregated cost models. It also produces cost curves for each customer that reveal the margin impacts on the wider business, and it validates the yield of products and cost of customer acquisition with models that learn the relationships between marketing efforts and customer behaviors (like real-time load).

Innowwatts told VentureBeat that it observed “dramatic” shifts in energy usage between the first and fourth weeks of March. In the Northeast, “non-essential” retailers like salons, clothing shops, and dry cleaners were using only 35% as much energy toward the end of the month (after shelter-in-place orders were enacted) versus the beginning of the month, while restaurants (excepting pizza chains) were using only 28%. In Texas, conversely, storage facilities were using 142% as much energy in the fourth week compared with the first.

Innowatts says that throughout these usage surges and declines, its clients took advantage of AI-based load forecasting to learn from short-term shocks and make timely adjustments. Within three days of shelter-in-place orders, the company said, its forecasting models were able to learn new consumption patterns and produce accurate forecasts, accounting for real-time changes.

Innowatts CEO Sid Sachdeva believes that if utility companies had not leveraged machine learning models, demand forecasts in mid-March would have seen variances of 10-20%, significantly impacting operations.

“During these turbulent times, AI-based load forecasting gives energy providers the ability to … develop informed, data-driven strategies for future success,” Sachdeva told VentureBeat. “With utilities and energy retailers seeing a once-in-a-lifetime 30%-plus drop in commercial energy consumption, accurate forecasting has never been more important. Without AI tools, utilities would see their forecasts swing wildly, leading to inaccuracies of 20% or more, placing an enormous strain on their operations and ultimately driving up costs for businesses and consumers.”

Autogrid
Autogrid works with over 50 customers in 10 countries — including Energy Australia, Florida Power & Light, and Southern California Edison — to deliver AI-informed power usage insights. Its platform makes 10 million predictions every 10 minutes and optimizes over 50 megawatts of power, which is enough to supply the average suburb.

Flex, the company’s flagship product, predicts and controls tens of thousands of energy resources from millions of customers by ingesting, storing, and managing petabytes of data from trillions of endpoints. Using a combination of data science, machine learning, and network optimization algorithms, Flex models both physics and customer behavior, automatically anticipating and adjusting for supply and demand patterns through virtual power plants that coordinate distributed assets.

Autogrid also offers a fully managed solution for integrating and utilizing end-customer installations of grid batteries and microgrids. Like Flex, it automatically aggregates, forecasts, and optimizes capacity from assets at sub-stations and transformers, reacting to distribution management needs while providing capacity to avoid capital investments in system upgrades.

Autogrid CEO Dr. Amit Narayan told VentureBeat that the COVID-19 crisis has heavily shifted daily power distribution in California, where it’s having a “significant” downward impact on hourly prices in the energy market. He says that Autogrid has also heard from customers about transformer failures in some regions due to overloaded circuits, which he expects will become a problem in heavily residential and saturated load areas during the summer months (as utilities prepare for blackouts across the U.S. when air conditioning usage goes up).

“In California, [as you’ll recall], more than a million residents faced wildfire prevention-related outages in PG&E territory in 2019,” Narayan said, referring to the controversial planned outages orchestrated by Pacific Gas & Electric last summer. “The demand continues to be high in 2020 in spite of the COVID-19 crisis, as residents prepare to keep the lights on and brace for a similar situation this summer. If a 2019 repeat happens again, it will be even more devastating, given the health crisis and difficulty in buying groceries.”

AI making a difference
AI and machine learning isn’t a silver bullet for the power grid — even with predictive tools at their disposal, utilities are beholden to a tumultuous demand curve and to mounting climate risks across the grid. But providers say they see evidence the tools are already helping to prevent the worst of the pandemic’s effects — chiefly by enabling them to better adjust to shifted daily and weekly power load profiles.

“The societal impact [of the pandemic] will continue to be felt — people may continue working remotely instead of going into the office, they may alter their commute times to avoid rush hour crowds, or may look to alternative modes of transportation,” Schneider Electric chief innovation officer Emmanuel Lagarrigue told VentureBeat. “All of this will impact the daily load curve, and that is where AI and automation can help us with maintenance, performance, and diagnostics within our homes, buildings, and in the grid.”

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China Unified Power Market enables carbon neutrality through renewable integration, cross-provincial electricity trading, smart grid upgrades, energy storage, and market reform, reducing coal dependence and improving grid flexibility, efficiency, and emissions mitigation.

Key Points

A national power market integrating renewables and grids to cut coal use and accelerate carbon neutrality.

✅ Harmonizes pricing and cross-provincial electricity trading.

✅ Boosts renewable integration with storage and smart grids.

✅ Improves dispatch efficiency, reliability, and emissions cuts.

China's ambitious goal to achieve carbon neutrality has become a focal point in global climate discussions around the global energy transition worldwide, with experts emphasizing the pivotal role of a unified power market in realizing this objective. This article explores China's commitment to carbon neutrality, the challenges it faces, and how a unified power market could facilitate the transition to a low-carbon economy.

China's Commitment to Carbon Neutrality

China, as the world's largest emitter of greenhouse gases, has committed to achieving carbon neutrality by 2060. This ambitious goal signals a significant shift towards reducing carbon emissions and mitigating climate change impacts. Achieving carbon neutrality requires transitioning away from fossil fuels, including investing in carbon-free electricity pathways and enhancing energy efficiency across sectors such as industry, transportation, and residential energy consumption.

Challenges in China's Energy Landscape

China's energy landscape is characterized by its heavy reliance on coal, which accounts for a substantial portion of electricity generation and contributes significantly to carbon emissions. Transitioning to renewable energy sources such as wind, solar, hydroelectric, and nuclear power is essential to reducing carbon emissions and achieving carbon neutrality. However, integrating these renewable sources into the existing energy grid poses technical, regulatory, and financial challenges that often hinge on adequate clean electricity investment levels and policy coordination.

Role of a Unified Power Market

A unified power market in China could play a crucial role in facilitating the transition to a low-carbon economy. By integrating regional power grids and promoting cross-provincial electricity trading, a unified market can optimize the use of renewable energy resources, incorporate lessons from decarbonizing electricity grids initiatives to enhance grid stability, and reduce reliance on coal-fired power plants. This market mechanism encourages competition among energy producers, incentivizes investment in renewable energy projects, and improves overall efficiency in electricity generation and distribution.

Benefits of a Unified Power Market

Implementing a unified power market in China offers several benefits in advancing its carbon neutrality goals. It promotes renewable energy development by providing a larger market for electricity generated from wind, solar, and other clean sources that underpin the race to net-zero in many economies. It also enhances grid flexibility, enabling better management of fluctuations in renewable energy supply and demand. Moreover, a unified market encourages innovation in energy storage technologies and smart grid infrastructure, essential components for integrating variable renewable energy sources.

Policy and Regulatory Considerations

Achieving a unified power market in China requires coordinated policy efforts and regulatory reforms. This includes harmonizing electricity pricing mechanisms, streamlining administrative procedures for electricity trading across provinces, and ensuring fair competition among energy producers. Clear and consistent policies that support renewable energy deployment and grid modernization, and align with insights on climate policy and grid implications from other jurisdictions, are essential to attracting investment and fostering a sustainable energy transition.

International Collaboration and Leadership

China's commitment to carbon neutrality presents opportunities for international collaboration and leadership in climate action. Engaging with global partners, sharing best practices, and promoting technology transfer, as seen with Canada's 2050 net-zero target commitments, can accelerate progress towards a low-carbon future. By demonstrating leadership in clean energy innovation and climate resilience, China can contribute to global efforts to mitigate climate change and achieve sustainable development goals.

Conclusion

China's pursuit of carbon neutrality by 2060 represents a monumental endeavor that requires transformative changes in its energy sector. A unified power market holds promise as a critical enabler in this transition, facilitating the integration of renewable energy sources, enhancing grid flexibility, and optimizing energy efficiency. By prioritizing policy coherence, regulatory reform, and international cooperation, China can pave the way towards a sustainable energy future while addressing global climate challenges.

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Alberta-BC Pipeline Dispute centers on Trans Mountain expansion, diluted bitumen shipments, federal approval, spill response capacity, and electricity trade, as Alberta suspends power talks and Ottawa insists the Kinder Morgan project proceeds in national interest.

Key Points

Dispute over Trans Mountain expansion, bitumen limits, and jurisdiction between Alberta, B.C., and Canada.

✅ Alberta suspends BC electricity talks as leverage

✅ Ottawa affirms federal approval and spill response

✅ BC plans advisory panel on diluted bitumen risks

Alberta Premier Rachel Notley says her government is suspending talks with British Columbia on the purchase of electricity from the western province.

It’s the first step in Alberta’s fight against the B.C. government’s proposal to obstruct the Kinder Morgan oil pipeline expansion project by banning increased shipments of diluted bitumen to the province’s coast.

Up to $500 million annually for B.C.’s coffers from electricity exports hangs in the balance, Notley said.

“We’re prepared to do what it takes to get this pipeline built — whatever it takes,” she told a news conference Thursday after speaking with Prime Minister Justin Trudeau on the phone.

Notley said she told Trudeau, who’s in Edmonton for a town-hall meeting, that the federal government needs to act decisively to end the dispute.

Speaking on Edmonton talk radio station CHED earlier in the day, Trudeau said the pipeline expansion is in the national interest and will go ahead, even as the federal government undertakes a study on electrification across sectors.

“That pipeline is going to get built,” Trudeau said. “We will stand by our decision. We will ensure that the Kinder Morgan pipeline gets built.”

B.C.’s environment minister has said his minority government plans to ban increased shipments until it can determine that shippers are prepared and able to properly clean up a spill, and, separately, has implemented an electricity rate freeze affecting consumers. He said he will establish an independent scientific advisory panel to study the issue.

The move infuriated Notley, who has accused B.C. of trying to change the rules after the federal government gave the project the green light. B.C. has the right to regulate how any spills would be cleaned up, but can’t dictate what flows through pipelines, she said.

Trudeau said Canada needs to get Alberta’s oil safely to markets other than the U.S. energy market today. He said the federal government did the research and has spent billions on spill response.

“The Kinder Morgan pipeline is not a danger to the B.C. coast,” he said.

Notley said she thanked Trudeau for his assurance that the project will go ahead, but the federal government has to do more to ensure the pipeline’s expansion.

“This is not an Alberta-B.C. issue. This is a Canada-B.C. issue,” she said. “This kind of uncertainty is bad for investment and bad for working people

“Enough is enough. We need to get these things built.”

B.C. Premier John Horgan said his government consulted Alberta and Ottawa about his province’s intentions, noting that Columbia River Treaty talks also shape regional electricity policy.

“I don’t see what the problem is,” Horgan said Thursday at a school opening north of Kelowna, B.C. “It’s within our jurisdiction to put in place regulations to protect the public interest.

“That’s what we are doing.”

He downplayed any possibility of court action or sanctions by Alberta.

“There’s nothing to take to court,” Horgan said. “We are consulting with the people of B.C. It’s way too premature to talk about those sorts of issues.

“Sabre-rattling doesn’t get you very far.”

Speaking in Ottawa, Natural Resources Minister Jim Carr wouldn’t say what Canada might do if British Columbia implements its regulation.

“That’s speculative,” said Carr.

He noted at this point, B.C. has just pledged to consult. He said the federal government heard from thousands of people before the pipeline was approved.

“That’s what they have announced — an intention to consult. We have already consulted.”

B.C.’s proposal creates more uncertainty for Kinder Morgan’s already-delayed Trans Mountain expansion project that would nearly triple the capacity of its pipeline system to 890,000 barrels a day.

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Medicine Hat Bitcoin Mining Facility drives massive electricity demand and energy use, leveraging natural gas and nearby wind power; Hut 8 touts economic growth, while critics cite carbon emissions, renewables integration, and climate impact.

Key Points

A Hut 8 project in Alberta that mines bitcoin at scale, consuming up to 60 MW and impacting energy and emissions.

✅ Consumes more than 60 MW, rivaling citywide electricity use

✅ Sited by natural gas plant; wind turbines nearby

✅ Economic gains vs. carbon emissions and climate risks

On the day of the grand opening of the largest bitcoin mining project in the country, the weather was partly cloudy and 15 C. On a Friday afternoon like this one, the new facility uses as much electricity as all of Medicine Hat, Alta., a city of more than 60,000 people and home to several large industrial plants.

The vast amount of electricity needed for bitcoin mining is why the city of Medicine Hat has championed the economic benefits of the project, while environmentalists say they are wary of the significant energy use.

Toronto-based Hut 8 has spent more than $100 million to develop the 4½-hectare site on the northern edge of the city. It has 56 shipping containers, each filled with 180 computer servers that digitally mine for bitcoin around the clock.

The company said it has already mined more than 3,300 bitcoins in Alberta, including at its much smaller site in Drumheller. On average, the Medicine Hat facility mines about 20 bitcoins per day. The value of bitcoin can fluctuate daily, but has sold recently for around $9,000.

The bitcoin mining facility is located right beside the city of Medicine Hat's new natural gas-fired power plant and four wind turbines are a short distance away. The bitcoin plant can consume more than 60 megawatts of power, more than 10 times more electricity used by any other facility in the city, according to the mayor.

That's why, in the event of a summer heat wave, the city has provisions in place to pull the plug on the electricity it provides to Hut 8, mirroring utility pauses on crypto loads seen elsewhere, so there won't be any blackouts for residents, according to the mayor.

Still, some say the bitcoin mining industry wastes far too much energy

"It's a huge magnitude when you talk about the carbon emissions," said Saeed Kaddoura, an analyst with the Pembina Institute, an environmental think-tank. "Moving forward, there needs to be some consideration on what the environmental impact of this is."

Medicine Hat owns its own natural gas and electricity generation and distribution businesses. The city leases the land to Hut 8 and the facility employs 40 full-time workers. Add up the economic benefits and the city of Medicine Hat will receive a significant financial boost from the new project, says Ted Clugston, the city's mayor.

Financial details of the city's deal with Hut 8 are not disclosed.

For more than a century, the city has attracted business by offering low-cost energy, and the mayor said this project is no different.

"They could have gone anywhere in the world and they chose Medicine Hat," said Clugston. "[Hut 8] is not here for renewable energy because it is not reliable. They need gas-fired generation and we have it in spades."

Environmental groups are concerned by the sheer amount of energy consumed by bitcoin mining, with some utilities warning they can't serve new energy-intensive customers right now, especially in places like Medicine Hat where most of the electricity is produced by fossil fuels.

The bitcoin system is designed, so only a limited number of the cryptocurrency can be mined everyday. Over time, as more miners compete for a decreasing number of available bitcoins, facilities will have to use more electricity compared to the amount of the cryptocurrency they collect.

"The way the bitcoin algorithm works is that it's designed to waste as much electricity as possible. And the more popular bitcoin becomes, the more electricity it wastes," said Keith Stewart, a spokesperson for Greenpeace.

Stewart questions whether natural gas should be used to produce a digital product.

"If you live in Alberta, you want to have heat and light, those types of things. I don't think bitcoin is a necessity of life for anyone," he said.

The CEO of Hut 8 completely disagrees, arguing the cryptocurrency is essential.  

"Bitcoin was created during the financial crisis. It has really served a purpose in terms of providing the opportunity for people who don't necessarily trust their government or their central banks," said Andrew Kiguel.

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