Canadian Ghost Town Ocean Falls In British Columbia To Be Revived For Crypto Mining
Ocean Fall, British Columbia, is a remote and almost desolated rural town in the Canadian wilderness is looking to get a new lease on life as a crypto mining company begins operations.
About Ocean Falls
Ocean Falls is situated along the remote area of British Columbian coastline. The town is found among steep mountains covered in a pine forest which emerges from wide river channels that empty into the Pacific Ocean.
The Canadian town has practically nothing but a bar and around permanent 50-70 residents. The ‘ghost town’ however has something to its advantage, it is home to a hydroelectricity dam which was once used to power a vast wood mill in Ocean Falls.
Brains behind the Ocean Falls mining
Kevin Day is the entrepreneur behind Ocean Falls Blockchain, a company found in a town which is accessible only by water (boats or seaplanes).
Kevin Day had the idea on how to build a mining operation in the town, however, he lacked the technical knowledge and connection, so in 2015, Kevin Day approached the operations manager of the firm who owns the dam, Brent Case.
Kevin Day and Brent Case spent the next two and a half years transforming a huge room in the old mill into a mining facility.
The pair was also involved in negotiations with the owners of the dam, Boralex, to agree on a rate. The agreed price is unknown but is believed to be less than 4 Canadian cents per kilowatt hour over a five-year period.
After agreeing on this lucrative deal, the mining equipment was brought in, and the mine started working in July of this year.
Why locations like Ocean Falls attract mining firms?
Abandoned towns in rural Canada are continuing to prove an attractive place for firms looking to set up Bitcoin mining operations, and for the right reasons too.
The cold climate and abundant spare energy resources in Ocean Falls make it an ideal location for the power-intensive industry.
The primary power supply for the sawmill in Ocean Falls was from the dam. The dam is still capable of producing roughly 13 megawatts of electricity.
The dam in Ocean Falls is not connected to the grid, so the energy is used to generate power for the relatively tiny community, also leaving more than enough for neighboring towns like Bella Bella and Shearwater.
The total amount of energy consumed by these three communities is less than a third of the total energy produced by the dam annually.
The surplus of energy leaves more than enough surplus power for those companies that have proven exceptionally power hungry, like cryptocurrency mining.
Ocean Falls is located in a very remote area, which means industries looking to tap into their almost free power supply would have to consider extra logistic costs, however, it in no way affects mining operations.
Since there is no physical commodity created and moved out, the rurality of the area doesn’t affect operations all that much. It would instead thrive in the cold region with cheap power supply.
Oceans Falls; a revived ghost town?
Owner Brent Case was very excited by the prospect of breathing new life into the town through mining, however, the price of Bitcoin has dropped considerably from when most of the projections were made (February this year).
Since data centers require minimal upkeep after their initial set up, it is unclear just how the industry will impact the town.
The new mining shop does not need hundreds or thousands of employees in Ocean Falls, this means that the local economy may not witness a whole turnaround.
However, more individuals will be required to move into the town to carry work with the mining firm. The number needed may not be able to kick-start such a forgotten town, but it places the town on the map of crypto operations.