Another day, another hydroelectric plant saved by Bitcoin mining. For the untrained eye, the narrative that says that Bitcoin incentivizes green energy might seem convenient. However, each day more concrete examples come to light. Like the Navajo Nation case. Or this hydroelectric plant in Costa Rica. In contrast, China banned Bitcoin mining and some hydroelectric plants immediately closed and went up for sale.
Anyway, today weโre talking about the Mechanicville Hydroelectric Plant in New York. Located near de Hudson Riverโs shore, in the Town of Halfmoon, Saratoga County. The place is listed on the National Register of Historic Places, thatโs the main reason it was never torn down. According to Times Union, the plant is โthe oldest continuously operated hydroelectric station in the U.S.โ and it โwas nearly dismantled.โ
this plant should become a #bitcoin museum of the start of a trend โ #bitcoin funded green power expansion, in this case preserving green power about to be closed! https://t.co/814CJCy8pV
โ Adam Back (@adam3us) January 16, 2022
โWe think this is the oldest renewable energy facility in the world thatโs still running,โ said Jim Besha Sr., CEO of Albany Engineering Corp.โ That company owns the Mechanicville hydroelectric plant. And how does the station relate to Bitcoin mining?
โDespite getting the plant back to full power, thereโs not a lot of profit in running a plant that still uses all of the original 1800s machinery. Thatโs why some of the plantโs energy is now being used to produce bitcoin.
โWe can actually make more money with bitcoin than selling the electricity to National Grid,โ Besha said.โ
You donโt say, Mr. Besha. Who would have thought?
The Mechanicville Hydroelectric Plant Vs. The World
This hydroelectric plantโs story is full of betrayal, twists, and turns. The National Grid had a 40-year commitment to buy power from it. However, according to The Bitcoin Files substack, the National Grid โreneged on the deal in 1993. A decade of litigation ensued, and Albany Engineering took control in 2003.โ Whatโs a hydroelectric plant to do?ย
โConverting an outdated hydro plant into a Bitcoin mining is still quite a story, and the local Albany Times Union article from two weeks ago was picked up by Bitcoin publications around the country. Kathleen Moore, who wrote the story on the plant, told me,
โItโs something theyโve been experimenting with โ they want to use their power for green uses like charging electric cars. But for now, their choices are limited. So theyโre adding some Bitcoin mining.โ
Thatโs right. People might have all kinds of ideas of what it wants to do with their power, but the fact of the matter is that only Bitcoin mining is flexible enough to accommodate any electricity source. In this case, as Besha told Times Union, โItโs the best (type of bitcoin mining) because weโre using renewable energy.โ
Sadly, Besha is not going to make it. In that same article, a chilling revelation spoils the party:
โHe converts the thousandths of a bitcoin they make each week to cash, rather than holding onto it. Heโs skeptical of bitcoin as a long-term investment; heโs just doing it to bring in cash.โ
Letโs hope that, as it usually happens, Beschaโs contact with Bitcoin changes him for the best. Letโs hope he already figured out heโs dealing with the best money ever created, and changing it for lesser money is not the best strategy.ย
BTC price chart 01/18/2022 on Bitstamp | Source: BTC/USD on TradingView.com
Conclusions And Discussions
In any case, another hydroelectric plant saved by Bitcoin mining will always be cause for celebration. Bitcoin incentivizes the creation and maintenance of green energy infrastructure and donโt let anyone tell you otherwise.
Featured Image: Mechanicville Hydroelectric Plant's sign from this substack post | Charts by TradingView
