My Northern Wisconsin

Covering Ashland, Iron, Lincoln, Oneida, Price, Rusk, Sawyer, Taylor, and Vilas Counties


MAYOR BABLICK RESPONDS TO CRYPTO MINING AT THE PARK FALLS PAPER MILL SITE


A crypto mining operation has likely come to the former Park Falls paper mill leaving many residents wondering what exactly a crypto mining operation is and how it will impact the area.

Crypto currency is a digital form of money.  There are not any tangible bills or coins.  To earn this digital form of currency, also known as mining it, massive, high-performance computers are required.  The computers verify crypto currency transactions that occur on the Internet.  The first computer to verify the transaction as legitimate, through a series of complex math equations, earns the reward of digital currency.  Basically, the company who owns the computers, which do the mathematical equations, earns their money through the resources of computers rather than people.  A crypto mining operation in Park Falls will not create a large number of jobs and will quite possibly not create any jobs.

According to their website, BBZ Technology Co., Ltd. is one of these crypto mining companies.  The company was founded in October 2012 and is a financial service company committed to diversified investment.  In 2017, BBZ started to explore the block chain mining industry, such as block chain games and mobile phone mining.  In May 2021, BBZ Technology Co., Ltd. and SOS Limited entered into a strategic partnership to begin construction of a block chain mining site.  The Wisconsin mining site, located in Park Falls, Wisconsin, opened in February 2022 and the Texas mining site is expected to open in March 2022.  BBZ Technology Co., Ltd. is listed as being based out of China.  Actual ownership of the mill is listed as Northwoods Group Realty, LLC as of January 2022.

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The company states that the Park Falls site is a good location because "the mild summer and cold winter season enable Wisconsin [to be] a better crypto mining site for the heat loss of miner machines.  The factory in Park Falls crypto mining site can also accommodate about twenty 40-foot crypto mining containers, and each 40-foot container has 336 slots, which perfectly avoids the precipitation and moisture problems that may be encountered when the containers are placed in [an] open area."  There is a giant transformer in the paper mill and a new batch of transformers arrived the beginning of February.  The company states the total capacity of the site is 20 megawatts (MW).

Some American conservation groups state crypto mining companies are looking for places that have relatively inexpensive power in a rather cool climate.  These groups feel the energy used can pollute the area.  For example, rivers may increase in temperature, which would promote the growth of algae and possibly kill fish.  Carbon dioxide emissions may increase, as well, which has been documented by some conservation groups in other cities in America when a former plant is turned into a crypto mining operation.  However, crypto mining companies dispute these viewpoints.  Many of them state they are carbon neutral because they buy carbon credits that offset the plant's emissions.  Government agencies at other sites have reported there is not a significant change to the environment.

Michael Bablick, the mayor of Park Falls commented, "To my understanding, no more electricity will be used than what the mill used when it was a paper mill, which was about 20-25 MW.  I have no evidence that there will be an impact on the river, either. Obviously this is a fluid situation, and I will be monitoring it closely."  Mayor Bablick also commented that there are not any specific permits required for crypto mining operations and there do not appear to be any obvious ordinance or zoning violations.  He added, "We will be monitoring it closely to ensure all local laws are followed."

Further, the City of Park Falls issued a press release and stated, "The city does not believe this use is the best use of the property in terms of jobs for our area; however, that is a matter solely for the owner of the mill to decide.  The mayor has facilitated site visits with local businesses in order to foster expansion of local businesses and hopefully they will prove fruitful.  We do know there has been a lot of interest in the property for various expansion plans and will continue to work with those parties to facilitate and encourage reuse which is beneficial to the whole area."

Aside from the crypto mining aspect, but in related news, the current owners of the mill received all necessary permits from the city and DNR to demolish a large boiler on site, known as Number 6 Boiler.  The large structure with a smokestack is located south of Hwy. 182.  The demolition company plans to have the structure down in the Spring 2022.  The owners of the mill will continue to liquidate the rest of the mill, which is still expected to take two to three years.

   
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(This post was last modified: 02-25-2022, 01:22 PM by My Northern Wisconsin.)