Controversy surrounds Bitcoin mining near Corsicana – NBC 5 Dallas-Fort Worth

At a time when the supply of electricity and water is extremely tight, there is controversy on Corsicana about a new facility that will use huge amounts of both.

The world’s largest Bitcoin mining operation is planned by a company called Riot Blockchain on a 265-acre site, 7 miles outside Corsicana in Navarro County.

Bitcoin is mined in buildings with enormous computing power that run complicated mathematical formulas around the clock.

Some experts believe bitcoin will become a dominant global currency in the future.

The Navarro County area is ideally located next to a power outlet and offers access to power supply.

It will be much larger than the company’s existing business in Rockdale, Texas.

The company says the Corsicana community will benefit from a $ 333 million investment in the site and hundreds of new workers.

“Our facility creates well-paid jobs, 401k, health insurance and all the bells and whistles a public company offers its employees,” said Riot Blockchain Vice President Chad Harris. “Riot Blockchain is a good corporate citizen that invests in its community, invests in the people.”

Officials in the city of Corsicana have said they can provide the large amount of water the company needs to cool down these computers.

A group called Concerned Citizens of Navarro County has a list of doubts about the plans.

Jackie Sawicky with the group said that the biggest concern is the possibility of higher electricity prices for people who already live there.

“The immediate public response was overwhelmingly negative,” she said. “We can not keep the lights on as they are. Adding something like this to load our network is going to be catastrophic. “

Texas Gov. Greg Abbott tweeted support for Bitcoin mining in February.

“Lone Star State is poised to become a world leader in blockchain and cryptocurrency,” said Abbott.

The Electric Reliability Council of Texas (ERCOT), which helps manage the network, added some new regulations this year for bitcoin miners seeking to join.

But consultant Doug Lewin with Stoic Energy said Texas needs additional regulation that does not yet exist for very large additions such as Riot Blockchain plans.

“It’s rational to be concerned about this,” Lewin said.

At maximum planned use, Lewin estimated that the Corsicana operation alone could draw about half of similar use as the entire city of Austin. He said the sum of all proposed bitcoin mining operations in Texas could match the power demand in the DFW area.

“If we go along the path we have without effective regulation, the potential for problems with our network is quite high. But the opposite is true. With a little sensible regulation, I think it is entirely possible that Bitcoin can increase reliability and lower costs,” he said.

Lewin suggests that Bitcoin can be encouraged to arrange new dedicated wind and solar energy sources, which can also help reduce emissions.

These sources will then be available to switch to the grid in times of high power demand.

Harris said the Riot Blockchain is already closing when demand is high. He claims the large users can reduce prices for existing customers.

“Because we use electricity 24 hours a day, we actually suppress prices because generators actually work more efficiently because they know they have a user who can use it,” Harris said.

Sawicky said support for the bitcoin opposition group was growing.

‘At first I was on the fence about it, quite ambivalent. And the more I learned as an environmentalist, the more terrified I became. And then to find out that this was going to be in our county, I was furious immediately, “she said.

Riot Blockchain plans to launch the Corsicana operation in 2023. It will be located in an unincorporated area where Navarro County has no zoning regulations to stop it.