Iceland Cuts Power to Industry, Turns Away New Bitcoin Miners




  • In Business
  • 2021-12-07 15:20:46Z
  • By Bloomberg
 

(Bloomberg) -- A lack of power in Iceland has caused the island's main utility, Landsvirkjun, to reduce supplies to some industrial customers, such as aluminum smelters, data centers and fish meal factories, as well as turn away new Bitcoin miners.

Most Read from Bloomberg

  • The World's Relentless Demand for Chips Turns Deadly in Malaysia

  • Sand and Soldiers Mix as Troops Move In to Protect Cancun Tourists

  • Even in the Metaverse, Not All Identities Are Created Equal

  • The $300 Billion Plan to Bring Green Power to China's Megacities

  • Meet the New Climate Refugee in Town: Coyotes

Low hydro reservoir levels, a malfunction at a power station and a delay in obtaining power from an external producer led to the reduction, effective immediately, the company said on Tuesday.

Iceland's biggest electricity consumers are its giant smelters built decades ago to benefit from cheap power. Aluminum is one of the most energy-intensive industrial metals to produce, and traders have been bracing for supply cuts as the regional energy crunch deepens. Prices reached a 13-year high in October as Chinese producers faced a supply crunch, and the renewed surge in power prices is creating fresh risks to supply in Europe. Aluminum prices rose 1.1% to $2,616.50 a ton on Tuesday.

A more recent entrant are cryptocurrency miners, lured in by the cheap electricity needed for mining new coins after demand and prices have skyrocketed. Despite recent volatility, in dollar terms Bitcoin is up more than 80% year to date, and hit an all-time high of almost $69,000 in November. Hive Blockchain Technologies Ltd. from Canada, Hong Kong-listed Genesis Mining Ltd. and Bitfury Holding BV are among companies that have set up shop in the country. All power-supply requests from new clients mining electronic coins are now rejected, Landsvirkjun said.

Landsvirkjun said limitations of the distribution system mean it's unable to serve load points in the southwest from the country's biggest power station, Karahnjukavirkjun, located in the eastern part of the country. Century Aluminum Co.'s Grundartangi and Rio Tinto Plc's smelter are both in the western area that's suffering shortages, while Alcoa Corp.'s Fjardaal plant sits in the East Fjords with ample power.

(Adds detail on aluminum smelters, crypto)

Most Read from Bloomberg Businessweek

  • Return-to-Office Chaos Is the Best Thing to Happen to Consultants Since Y2K

  • The Fall of a Russian Cyberexecutive Who Went Against the Kremlin

  • Paige Bueckers, a College Athlete Who's Cashing In

  • The Meme Stock

  • David Baszucki, Roblox's 'Builderman'

©2021 Bloomberg L.P.

COMMENTS

More Related News

Peltz
Peltz's Activist Fund Trian Is Said to Build Stake in Unilever

(Bloomberg) -- Nelson Peltz's activist hedge fund Trian Fund Management has built a stake in Unilever Plc, according to people familiar with the matter...

Retail Resolve, Credit Form a Stock Bull Case for Troubled Times
Retail Resolve, Credit Form a Stock Bull Case for Troubled Times

(Bloomberg) -- Fortitude among small-time traders and sanguine credit signals underlie what's left of the stock bull case as markets skid toward their worst ...

U.S. Stocks Historically Deliver Strong Gains in Fed Hike Cycles
U.S. Stocks Historically Deliver Strong Gains in Fed Hike Cycles

(Bloomberg) -- As the Nasdaq 100 comes off its worst week since the pandemic selloff in March 2020, investors now have to contend with Wednesday's Fed...

Activist Hedge Fund Trian Builds Stake in Unilever: FT
Activist Hedge Fund Trian Builds Stake in Unilever: FT

(Bloomberg) -- Nelson Peltz's activist hedge fund Trian Partners has built a stake in Unilever Plc, the Financial Times reported, potentially adding pressure...

For Goldman, Saudi Arabia Will Remain King of Mideast IPO Deals
For Goldman, Saudi Arabia Will Remain King of Mideast IPO Deals

(Bloomberg) -- Saudi Arabia will remain the busiest of the Middle East's stock markets, even as the United Arab Emirates pushes more companies to go public, ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business