Protect Pend Oreille is a coalition of like-minded citizens of Pend Oreille County who are committed to protecting our communities, ecology, and economy by ensuring the integrity of the process and responsibly managing risks.
Will Allrise Capital restart the paper mill?
Facts on the Ground show Allrise couldn't open the paper mill within five years if they wanted to (and they probably don't)
ver the last two years, Allrise Capital and their partners, the Beijing-based bitcoin giant Bitmain, have invoked restarting the former PNC paper mill four times. Each time, the restart was tied to a specific requirement to financial benefit their bitcoin mining operation.
The first time improved their odds of securing court approval of their ownership of the mill in April 2021.
The second time was only a week after concluding their power contract with the PUD in August 2022. Public records show they had not mentioned power for the mill during months of negotiations. Only when they failed to accurately forecast power costs for their crypto-mining operations did they discover they could reopen the mill in three months—but only if the PUD agreed to a new, cheaper power contract for crypto-mining—a claim that looks questionable in hindsight.
The third time was at the end of January 2023 when they invoked restarting the mill in hopes of getting $400,000 of taxpayer funds through a questionable application for a state grant.
Now, it appears they are invoking restarting in hopes that State Senator Shelley Short will amend HB1416 to exempt their crypto-mining operations from the Clean Energy Transformation Act – legislation that will actually benefit our county by protecting our residential rates from being raised to subsidize Beijing’s crypto-mining.
So, does Allrise/Bitmain actually intend to restart the mill, or is it just all leverage to use against the PUD to get a better power contract?
Here are five reasons why it's unlikely Allrise/Bitmain intends to restart the mill.
1.Ponderay Industries LLC has neither prepared nor presented a plausible business plan for operating the paper mill, nor does it appear such a business case exists.
2.The existing power infrastructure supporting the former PNC mill site cannot support the operations of both the existing bitcoin mining center and the paper mill. According to already completed BPA Interconnection Studies, expanding power infrastructure to the necessary level would take at least 4-7 years.
3.Ponderay Industries LLC grossly misrepresented the cost of investment necessary to restart the mill. The currently required investment will exceed $100 million, not the $1.4 million indicated in the grant application.
4.Ponderay Industries LLC, which has no known assets or income, does not have the ability to finance the necessary investment. Its parent company, Allrise Capital Inc., has neither committed to financing the necessary investment nor does it appear to have the assets, income, or credit necessary to fund the required investment.
5.Funding this project is inconsistent with state climate and environmental protection policies embodied in the Clean Energy Transformation Act and current House Bill 1416. The existing Bitcoin mining operating at the former PNC mill site purchases no e-tagged electricity, uses no clean, renewable power, and has repeatedly misrepresented the source and carbon cost of the electricity it uses.
For a detailed assessment, please review the following memorandum prepared for and submitted to the Washington Department of Commerce. You can download it here: (see below)
The first time improved their odds of securing court approval of their ownership of the mill in April 2021.
The second time was only a week after concluding their power contract with the PUD in August 2022. Public records show they had not mentioned power for the mill during months of negotiations. Only when they failed to accurately forecast power costs for their crypto-mining operations did they discover they could reopen the mill in three months—but only if the PUD agreed to a new, cheaper power contract for crypto-mining—a claim that looks questionable in hindsight.
The third time was at the end of January 2023 when they invoked restarting the mill in hopes of getting $400,000 of taxpayer funds through a questionable application for a state grant.
Now, it appears they are invoking restarting in hopes that State Senator Shelley Short will amend HB1416 to exempt their crypto-mining operations from the Clean Energy Transformation Act – legislation that will actually benefit our county by protecting our residential rates from being raised to subsidize Beijing’s crypto-mining.
So, does Allrise/Bitmain actually intend to restart the mill, or is it just all leverage to use against the PUD to get a better power contract?
Here are five reasons why it's unlikely Allrise/Bitmain intends to restart the mill.
1.Ponderay Industries LLC has neither prepared nor presented a plausible business plan for operating the paper mill, nor does it appear such a business case exists.
2.The existing power infrastructure supporting the former PNC mill site cannot support the operations of both the existing bitcoin mining center and the paper mill. According to already completed BPA Interconnection Studies, expanding power infrastructure to the necessary level would take at least 4-7 years.
3.Ponderay Industries LLC grossly misrepresented the cost of investment necessary to restart the mill. The currently required investment will exceed $100 million, not the $1.4 million indicated in the grant application.
4.Ponderay Industries LLC, which has no known assets or income, does not have the ability to finance the necessary investment. Its parent company, Allrise Capital Inc., has neither committed to financing the necessary investment nor does it appear to have the assets, income, or credit necessary to fund the required investment.
5.Funding this project is inconsistent with state climate and environmental protection policies embodied in the Clean Energy Transformation Act and current House Bill 1416. The existing Bitcoin mining operating at the former PNC mill site purchases no e-tagged electricity, uses no clean, renewable power, and has repeatedly misrepresented the source and carbon cost of the electricity it uses.
For a detailed assessment, please review the following memorandum prepared for and submitted to the Washington Department of Commerce. You can download it here: (see below)
| ponderay_industries_evergreen_grant_misrepresentations_and_omissions.pdf |
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