1. Closure of Kryptovault’s Mining Facility
2. Noise Violations and Residents Complaints
3. 20% Increase in Electricity Bills

The recent closure of Kryptovault’s Bitcoin mining facility in Stokmarknes, Norway, has led to a 20% increase in electricity bills for local residents. The decision came after the Hadsel municipality failed to renew the operating permit due to persistent noise complaints.

Closure of Kryptovault’s Mining Facility

Earlier this week, Kryptovault’s Bitcoin mining facility in Stokmarknes shut down after Hadsel municipality chose not to extend the company’s expired temporary permit.

Noise Violations and Residents Complaints

Hadsel’s administration issued an operating permit to Kryptovault about three years ago. However, since then, the facility’s operations have been more of a headache for the locals, with many lodging noise complaints against the company. In 2022, some residents living in close proximity to the plant told NRK, a Norwegian Media outlet, that they barely slept at night due to the noise from the facility. Harald Martin Eilertsen, who lived about 250 meters away from the mining facility, referred to it as ‘troublesome,’ comparing the sound to that of a powered sawmill running nonstop at the time. The mayor of Hadsel, Kjell-Børge Freiberg, also spoke on the mine’s closure, noting that the facility’s noise had distressed multiple residents. The Stokmarknes site’s primary use of air coolers has contributed to most of the noise output as they are typically louder than liquid-based coolers. In its first years of operations, the company measured the noise produced internally and stated it was below limit values. However, it was said that it would build higher noise walls around the plant and put sound-absorbing material around the equipment to reduce noise output. Despite all these, residents remained unsatisfied.

20% Increase in Electricity Bills

Kryptovault’s Bitcoin mining facility in Stokmarknes accounted for 20% of Noranett’s income, consuming over 80 GWh annually, equivalent to about 3200 households’ power needs. Upon learning that the Bitcoin mine had ceased all operations, the local energy company decided to raise electricity prices for residents to compensate for the loss of income from the mine. Noranett said power customers will now have to pay 20% more in the next month. Robin Jakobsen, a network manager at Noranett, projects a normal household that currently pays about NOK 12,000-13,000 annually will pay NOK 2,500-3,000 (equivalent to roughly $235 to $280 USD) higher in a year. Mayor Kjell-Børge Freiberg remarked that they are working on finding new projects to cover the power demand gaps, lessening the cost burdens on locals.

The closure of Kryptovault’s mining facility has caused significant challenges for local residents, who now face increased electricity bills. The local administration continues to seek solutions to this issue and is attracting new projects to compensate for the energy loss.