(Bloomberg) — Lancium Inc., which develops cryptocurrency infrastructure, signed a deal with a Texas battery-storage provider that will allow it to continue mining without putting stress on the state’s grid when demand spikes.
A unit of Broad Reach Power LLC will supply power for Lancium’s Fort Stockton 25 megawatt facility in West Texas, according to a statement Thursday.
The deal will enable Lancium to draw power from utility-scale batteries instead of power plants when supplies on the grid are tight.
Crypto miners flocking to Texas have been under scrutiny for adding strain to a system that collapsed last year during a deadly winter storm. Miners have promised to scale back operations when the state needs power, but have made few guarantees.
The batteries will be charged largely with wind and solar, allowing Lancium to use more renewables, according to the company, backed by Apollo Global Management and commodity merchant Mercuria Energy.
The first phase of Lancium’s planned facility will be dedicated to crypto miners and eventually will also be home to data centers.
CleanSpark Inc. signed an agreement to bring online 200 megawatts of Bitcoin mining capacity at the Lancium facility by spring of 2023 with the option to add another 300 megawatts.
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