|
Oil patch insider: Bitcoin mine on Franklin Bluffs pad; Bates named DEC commissioner-designee
Kay Cashman Petroleum News
The Alaska Department of Natural Resources' Division of Oil and Gas received a land use permit application in mid-May from STaX Capital Partners LLC, a Wasilla firm, requesting authorization to use up to 30 acres of available pad space at the Franklin Bluffs pad for Phase 1 of a power generation project in support of Bitcoin mining. The state-owned Franklin Bluffs gravel pad is approximately 35 miles south of Deadhorse, along the Dalton Highway.
STaX plans to place 10-megawatt mobile gas turbine generator sets to power 50 megawatts of modular Bitcoin mining pods at the pad.
The Phase 1 project is temporary and will serve as proof-of-concept for potential future development. The term of the project is July 2025 to July 2030.
A public notice was posted by the Division of Oil and Gas on May 16.
According to the application the president and CEO of STaX is Sparrow Mahoney.
Jim Shine of Holland & Hart LLP in Anchorage is listed as the attorney for STaX.
The application, number LAS 35555, listed the following project components: 50 MW mobile modular gas containers; transmission corridors with13.3kV armored feeders; staging areas measuring 75 feet by 75 feet section of pad at each location; a perimeter fence with a security gate; and staff housing.
More detailed project description information was included in the application, such as the requested permit area has two sections, a southwest section closer to the Dalton Highway and a northeast section, connected by a local road. The power generation, bitcoin mining and other project equipment will be located at the southwest section of the permit area, and STaX will secure this section with perimeter fencing. A staging area and employee housing will be located on the northwest section of the permit area.
A more detailed project description also included the following: The Phase I project will use Arctic Containerized Mobile Gas Turbine Generator Sets, model JT6, or similar build. The dimensions of the containers housing the turbines will be 10 feet by 40 feet and will be sited along the northern perimeter of the southwest section of the permit area. STaX is currently exploring options for supplying and transporting gas to the permit area and is negotiating with an upstream producer for gas supply. The turbines will power modular container pods used for Bitcoin mining, 40 feet by 8.5 feet sited in two rows along the east side of the southwest section of the permit area. Power will be distributed via transmission corridors with 13.8kV armored radial feeders and may include transmission banks consisting of 2.5 MVA oil-filled pad-mounted transformers. The components used in the project are all mobile, modular units that will be transported to the site on the Dalton Highway. Protection and metering will use SEL751/787 protective relays, MV switchgear with SCADA enabled monitoring, and load bank bypass and genset interlock for testing.
Grounding will be done through copper mesh ground grid bonded to turbine skids and ground rods spaced every 20 feet around the perimeter. STaX will be responsible for, or contract with, a company for snow removal services.
Finally, access to the Franklin Bluffs pad site will be along the existing local road that provides access to the pad from the Dalton Highway and STaX is currently negotiating the acquisition of the modular gas turbines. As previously noted, the turbines are expected to be 10MW each, although regardless of the precise capacity the modular units must fit within the area identified.
STaX expects to have the mobile modules ready to transport to the site by September.
In regard to spill plan and prevention methods all equipment will be containerized, with fluid capture integrated into the container design. Fluid capture includes spill prevention linings in every container. Thus, if any spill of a hazardous substance were to occur, the spill would be confined within the container housing the equipment and would not reach the Franklin Bluffs pad or surrounding environment.
Bates named DEC commissioner designee On May 15, Gov. Mike Dunleavy appointed Randy Bates as commissioner-designee for the Alaska Department of Environmental Conservation. Bates took over DEC starting Monday, May 19, and replaces Christina Carpenter who has served as the acting commissioner since January.
Bates returns to DEC after a long and accomplished career in state service. He previously served as director of the Division of Water in DEC, and prior to that was director of the Division of Habitat at the Alaska Department of Fish & Game.
"Randy is uniquely suited to assume the role of commissioner-designee for DEC and continue to push my administration's agenda to develop our plentiful resources responsibly and to minimize the impacts from all of our actions on the environment," Dunleavy said.
"It is an honor to be named commissioner, and I look forward to working for Governor Dunleavy and with the other members of his cabinet," said Bates. "My primary goal as commissioner will be to continue the department's mission of balancing the need for responsible development and preserving Alaska's pristine lands and waters and wildlife."
Carpenter has accepted a new position outside of state government and will remain at the department as deputy commissioner through May 30 to assist with the transition. Dunleavy thanked Carpenter for her dedication and years of service to the people of Alaska.
--Oil Patch Insider is written by Kay Cashman
| 