US congressman: mining could bolster the country’s energy independence

The Texas-based US Representative Pete Sessions says that bitcoin mining could play a “key role” in ensuring the country’s energy independence.

He has the backing of the renowned advocate for the first cryptocurrency, Senator Cynthia Lummis.

Indeed. https://t.co/XVAtHrtCbV

— Cynthia Lummis 🦬 (@CynthiaMLummis) March 21, 2022

The congressman did not specify how bitcoin mining would contribute to achieving the stated goal. However, he is not the only state politician to speak in support of the industry.

Senator Ted Cruz and Governor Greg Abbott noted that mining brings new jobs, taxes, and could help stabilise the largely deregulated state’s energy system.

In August 2021 the United States led in bitcoin hashrate share after the industry was banned in China. As of October, Texas ranked fourth among states by computational power in the network of the leading cryptocurrency, at 14%.

Castle Island Ventures partner Nick Carter explained why the region attracts miners.

Texas is such a “habitable zone” for bitcoin mining that it’s unreal,

Texas is such a goldilocks zone for bitcoin mining it’s unreal.

— Supportive policymakers
— Energy DNA
— Most deregulated market, cheap power
— Islanded grid, has to buy lots of ancillaries
— Most renewable grid, most negative pricing events

— dark nic (@nic__carter) March 19, 2022

He argues that this is driven by:

• political backing;
• the state’s energy-production traditions;
• deregulated markets and cheap power;
• an islanded grid and the need for ancillary systems;
• focus on renewable energy;
• surplus generating capacity;
• regulator-friendly stance.

In an article for Mining Week he explained how mining could bolster US energy independence. Carter noted that the Bitcoin network consumes around 15 GW. In the coming year or two, miners in the country are prepared to add another 20-30 GW.

This implies not only potential investments in generation but also a way to boost the economic resilience of solar and wind power plants. Because mining is an “interruptible” process, industry participants can balance demand for green energy, Carter noted.

In January, Iris Energy announced an increase of its mining capacity in Texas to 600 MW.

Compute North raised $385 million to build data centres for cryptocurrency mining in the United States, naming the state as one of the locations for such facilities.