A provincial supreme court judge in British Columbia upheld B.C. Hydro’s moratorium on crypto mining projects as reasonable, according to a ruling posted on Monday.
The moratorium, enacted in December 2022, faced a challenge from Conifex Timber, a forestry company diversifying into crypto mining. Their plans for a mining operation with the Tsay Keh Dene Nation, an indigenous tribe, were affected.
Justice Michael Tammen delivered the ruling on Friday, stating that B.C. Hydro’s decision to pause new connections for cryptocurrency mining for 18 months was reasonable and not unduly discriminatory. The ban was grounded on a cost-of-service basis, considering the significant energy demands of crypto mining and aiming to maintain affordable energy access for the broader population.
BC Hydro CEO Christopher O’Riley testified that Conifex’s proposed data centers would consume an astounding 2.5 million megawatt-hours of electricity annually, posing significant challenges to the utility provider.
Energy Minister Josie Osborne cited the massive electricity consumption of crypto mining and its limited job creation as reasons behind the policy. The court ruling emphasized the unique electricity consumption characteristics of crypto mining centers and the potential conflicts with clean energy and electrification goals.
Conifex Timber expressed disappointment, believing that the continued ban represents a missed opportunity for the province. The company had planned to establish new crypto mining operations in Salmon Valley and Ashton Creek, but the government’s pause halted negotiations, resulting in ongoing losses and damages.
The ruling aligns with similar regulatory actions globally, reflecting concerns about energy consumption and job creation in the crypto mining industry.