diff --git a/ethereum/core/src/main/java/tech/pegasys/pantheon/ethereum/core/Address.java b/ethereum/core/src/main/java/tech/pegasys/pantheon/ethereum/core/Address.java
index 7f4cbe161d..877c19f534 100644
--- a/ethereum/core/src/main/java/tech/pegasys/pantheon/ethereum/core/Address.java
+++ b/ethereum/core/src/main/java/tech/pegasys/pantheon/ethereum/core/Address.java
@@ -132,15 +132,13 @@ public static Address contractAddress(final Address senderAddress, final long no
   /**
    * Address of the created private contract.
    *
-   * <p>This implement equation (86) in Section 7 of the Yellow Paper (rev. a91c29c).
-   *
    * @param senderAddress the address of the transaction sender.
    * @param nonce the nonce of this transaction.
-   * @param privacyGroup hash of participants list ordered from Enclave response.
+   * @param privacyGroupId hash of participants list ordered from Enclave response.
    * @return The generated address of the created private contract.
    */
   public static Address privateContractAddress(
-      final Address senderAddress, final long nonce, final int privacyGroup) {
+      final Address senderAddress, final long nonce, final BytesValue privacyGroupId) {
     return Address.extract(
         Hash.hash(
             RLP.encode(
@@ -148,7 +146,7 @@ public static Address privateContractAddress(
                   out.startList();
                   out.writeBytesValue(senderAddress);
                   out.writeLongScalar(nonce);
-                  out.writeIntScalar(privacyGroup);
+                  out.writeBytesValue(privacyGroupId);
                   out.endList();
                 })));
   }
diff --git a/ethereum/core/src/main/java/tech/pegasys/pantheon/ethereum/privacy/PrivateTransactionProcessor.java b/ethereum/core/src/main/java/tech/pegasys/pantheon/ethereum/privacy/PrivateTransactionProcessor.java
index 4a2b4cc7d5..5dffaf3e3a 100644
--- a/ethereum/core/src/main/java/tech/pegasys/pantheon/ethereum/privacy/PrivateTransactionProcessor.java
+++ b/ethereum/core/src/main/java/tech/pegasys/pantheon/ethereum/privacy/PrivateTransactionProcessor.java
@@ -167,7 +167,7 @@ public Result processTransaction(
     final Deque<MessageFrame> messageFrameStack = new ArrayDeque<>();
     if (transaction.isContractCreation()) {
       final Address privateContractAddress =
-          Address.privateContractAddress(senderAddress, sender.getNonce() - 1L, 0);
+          Address.privateContractAddress(senderAddress, sender.getNonce() - 1L, BytesValue.EMPTY);
 
       initialFrame =
           MessageFrame.builder()