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Crypto mining company Greenidge Generation Holdings LLC has sued the New York Department of Environmental Conservation (DEC) to prevent the agency from closing the company’s power plant at Dresden. Greenidge is looking to dismiss the Department’s refusal to renew an air permit because of increased emissions caused by the miner’s machines at the plant.
The DEC expects Greenidge to shut down the plant on September 9 when its current permit expires. However, Greenidge believes the DEC should not be able to deny its application for renewal.
The crypto mining process is costly because it requires expensive machinery and high electricity costs. However, miners are rewarded with cryptocurrency for their efforts. While mining is one of many ways to earn cryptocurrency, its capital-intensive nature makes it less accessible. Other more common methods of earning with crypto include buying new assets from a crypto presale list and cashing out on heavy returns when the assets launch publicly. Sometimes, crypto investors hold some of these promising assets even after a public launch, as they are likely to spike based on their potential and functions in their respective ecosystems.
Greenidge’s trouble with the DEC began in June 2022 when the agency denied the company’s application for a new permit. According to the DEC, Greenidge is not eligible for a renewal because the company has failed to comply with Statewide greenhouse gas (GHG) emission limits. The denial also noted that Greenidge has adequately justified the continued operation of its facility.
In May, a decision issued by Director Dereth Glance of the DEC Region 7 upheld the decision to deny Greenidge’s permit, as the company lost its administrative appeal. Throughout the period since the first denial, the plant was allowed to continue operations. However, following the loss of the appeal, Greenidge is now looking to the courts to challenge the DEC’s denial. As part of Greenidge’s lawsuit, the company wants to stop the closure of its facility through injunctive relief.
President of Greenidge Generation Dale Irwin believes in the court system’s capacity to be non-partisan and has accused the DEC of partiality. According to Irwin:
“When we are in front of courts of law and out of politically biased and ad hoc DEC processes, the facts actually matter and the courts continue to recognize our facility meets the letter and intent of state and federal laws.”
Irwin is choosing to focus on Greenidge’s economic contribution to Upstate New York. He noted that the case is essential to the area because there are several working locals benefitting from the high-paying career opportunities, as well as local businesses and unions in partnership with Greenidge. Irwin also highlighted local communities that benefit from the “significant share of county tax revenue we are generating.”
When Greenidge got its permit in 2016, the company noted that it would only operate to provide “peaking” power to the electric grid. However, launching Bitcoin operations in 2019 caused the plant to generate a lot more energy and significantly increase its GHG emissions. Referencing staff analysis provided by the DEC, Glance said:
“Greenidge’s projected total facility emissions for calendar years 2022 through 2026 is 1,050,467 short tons of C02e (carbon dioxide equivalent) per year, which is more than six times the emissions the facility was producing, on average, prior to shifting to cryptocurrency mining operations.”
Several stakeholders and entities in support of the DEC have spoken against Greenidge. For instance, Mandy DeRoche, a Deputy Managing Attorney at the non-profit environmental law organization Earthjustice, praised the DEC “on behalf of the communities that live near this fossil power plant that mines cryptocurrency and that pollutes 24 hours a day.” For Earthjustice Senior Attorney Lisa Perfetto, the plant is “bad for the climate, bad for New York’s environment, and bad for its neighbors.”
