Making Noise And Disturbing Residents, Bitcoin Mines In Alberta Is Forced To Close

The silence of the city of Alberta, Canada, is disturbed by the noise of a bitcoin mine. (photo; alberta.gov)

JAKARTA – When residents of an affluent plantation community in Alberta, Canada, began to hear noise from a nearby power plant, they had little idea that their complaints about sleepless nights would lead to months of investigation. These efforts eventually found bitcoin mining operations had set up factories without approval.

Now, Link Global, the company behind the site, has been ordered by the provincial utility commission to shut down two plants until it can prove they are allowed to operate. This is a move that the company says will hurt jobs and cause the oil and gas infrastructure in which it operates to sit dormant.

Jeff Kocuipchyk first started hearing the sound last fall. He is president of the Greystone Manor Community Association, a small ward located in Sturgeon County, about 10 kilometers from the northwestern suburbs of Edmonton.

"It's different every time the wind changes direction. It's like a wave ... but 10 times louder and 100 times more annoying", said Kocuipchyk. "It's almost like an airplane engine warming up on the runway ... it's so messed up that none of my family can sleep".

Larry Haas heard it too. "We had a hot tub in the back. We would sit down and go, 'Hey, what plane landed in our field?'", Haas said. "It's peaceful. That's why you moved here. There's a premium you pay for a place like this. Then the noise starts - and it's no longer quiet and peaceful".

Kocuipchyk said the noise quickly became a topic of discussion among neighbors. Some people thought it might be agricultural equipment. The worst noise was heard along with a plot of vacant farmland to the west, home to what they believe to be a defunct natural gas facility.

So Kocuipchyk decided to investigate. "I went out there and ... said, 'What's this sound?' I don't know what a bitcoin mining operation is like".

Vancouver-based Link Global has installed four 1.25 MW gas generators at the site and is drawing electricity from an inactive natural gas well owned by Calgary-based company MAGA Energy.

Natural gas powers thousands of computer servers that run programs to "mine" digital currency, which involves solving complex and often energy-intensive computational math equations.

Work on the plant began in August 2020, and in the fall, when neighbors were getting annoyed, the plant was operating at full capacity.

There's only one problem: The company doesn't tell neighbors about its plans. Even city governments or provincial utility commissions, which allow power plants to be set up without approval. However, if it meets several requirements, including only generating electricity for the company's own use and proving that the power plant has no adverse impact on humans or the environment.

"No one gave us a phone call saying, 'Hey, we're going to do this'", Haas said. "The lack of respect for being a good neighbor also adds to the frustration".

Ten households from Greystone Manor, all located along the west side of the community, with backyards overlooking the factory, complained of the noise to the Alberta Utilities Commission (AUC). Eight complainants rated the impact on their quality of life as six out of 10 or higher. Three rated the severity as 10 out of 10.

Some said it made it difficult to sleep and even harder to be outside or open the windows.

Stephen Jenkins, CEO of Link Global, was the first to admit that the company's debut in the region didn't go as smoothly as hoped. "It's my fault. I totally blame it. We didn't consult with the people", Jenkins said.

Jenkins said as soon as he learned of the noise complaint, the company sent a team to measure decibel levels in the area.

The company temporarily shut down operations following AUC's orders and started operating only during the day, although it took several days to complete. It also implements noise reduction measures, such as thatched walls and exhaust insulation.

“If there was more that Link Global could do to make citizens happy, it would be”, Jenkins said. “Even if it means we pack up and go elsewhere. If it doesn't work there, we just close it; close the factory, and it will sit there again".

That might come as a surprise, but Jenkins says it's no problem moving on; which fits the way he sees Link Global operating within Alberta's energy ecosystem.