The recent closure of Kryptovault’s Bitcoin mining facility in Stokmarknes, Norway, has led to a significant rise in electricity bills for residents. Following numerous noise complaints, the decision to shut down the facility has resulted in a 20% increase in electricity costs.
Bitcoin mining facility shut down due to noise complaints
Kryptovault’s Bitcoin mining facility in Stokmarknes ceased operations after the local municipality, Hadsel, opted not to renew its operating permit. The facility had been operating under a temporary permit issued three years ago. However, persistent noise issues prompted the municipality to take action. The plant’s operations had caused considerable distress among residents, particularly those living near the site.
In 2022, several residents reported that the facility’s noise disrupted their sleep. One resident, Harald Martin Eilertsen, who lived just 250 meters from the plant, likened the noise to a continuous sawmill. The mayor of Hadsel, Kjell-Børge Freiberg, also acknowledged the noise’s impact on the community, emphasizing that the complaints had been taken seriously.
The facility’s noise mitigation efforts prove insufficient
The primary source of the noise was the air-cooling systems used at the site, which are generally louder than liquid-based cooling alternatives. Despite the company’s efforts to reduce noise by building higher noise barriers and installing sound-absorbing materials, residents remained dissatisfied. Kryptovault had previously measured the noise levels and claimed they were within acceptable limits, but the ongoing complaints indicated otherwise. The failure to adequately address these concerns ultimately led to the facility’s closure.
Residents now facing higher electricity costs
With the closure of the Bitcoin mining facility, the local energy provider, Noranett, has announced a 20% increase in electricity prices for residents. Kryptovault’s operations accounted for 20% of Noranett’s income, consuming over 80 GWh of electricity annually, equivalent to the power needs of approximately 3,200 households.
Noranett has decided to pass the costs onto consumers to offset the revenue loss. The price hike means that an average household paying between NOK 12,000 and 13,000 annually will see an increase of NOK 2,500 to 3,000, roughly $235 to $280 USD, in their yearly electricity bills.
Mayor Kjell-Børge Freiberg expressed the municipality’s commitment to finding new projects to fill the energy demand gap and reduce residents’ financial burdens. While the search for alternative industrial activities is ongoing, the mayor acknowledged that it might take time to find a suitable replacement that can contribute positively to the local economy.
The closure of the Bitcoin mining facility and the subsequent rise in electricity costs underscore the challenges communities face hosting such operations. As Stokmarknes adapts to these changes, the search for sustainable industrial activities continues.
The post Norwegian Town Faces Higher Electricity Bills After Bitcoin Mine Closure first appeared on Coinfea.
