North Tonawanda's Bold Move: Could Mini Nuclear Reactors Power Bitcoin Mining?

Exploring a Controversial Energy Source

A cryptocurrency mining facility in North Tonawanda is considering the use of mini nuclear reactors to power its operations instead of relying on natural gas by 2031.

While city officials are investigating the feasibility and potential restrictions of this plan, many residents have voiced their concerns. The idea emerged in December through a memorandum of understanding between Digihost and Nano Nuclear Energy, who are seeking guidance from NYSERDA (New York State Energy Research and Development Agency) for their proposal.

Community Concerns

The facility is located on an industrial-zoned plot but is close to residential neighborhoods already troubled by noise issues from the plant. Mayor Austin Tylec acknowledged the community's worries and stated, "I have reached out to them to understand the technology, which is still in development."

Deborah Gondek, Chair of the Climate Smart Task Force, raised critical questions about the management of nuclear waste and the potential for environmental disasters impacting local waterways. She noted a growing trend among Bitcoin mining companies nationwide to seek more environmentally friendly energy sources.

Proposed Moratorium

Mayor Tylec is planning a meeting with residents to discuss the possibility of implementing zoning restrictions and a potential moratorium on expanding Bitcoin mining operations in the area. He mentioned, "There will be a proposed moratorium that pauses any new energy systems in the city."

Skepticism Over Promises

Gondek expressed skepticism regarding Digihost's intentions, recalling a past promise by the company to eliminate noise from their facility, which has not been fulfilled. Michel Amar, CEO of Digihost, emphasized that collaborating with Nano Nuclear represents a significant step toward achieving sustainability goals and expanding their operations efficiently.

Jay Yu, CEO of Nano Nuclear Energy, stated their goal is to provide cost-effective alternatives to traditional energy sources, paving the way for sustainable energy solutions in New York State.

As of now, the community awaits further clarification from NYSERDA regarding their guidance on this nuclear power initiative.