Bitcoin mining power plant angered environmentalists

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One obstacle to large-scale bitcoin mining is finding enough cheap energy to run the huge, power-hungry computer networks that create and process cryptocurrency. A mining operation in central New York City has come up with a new solution that has alarmed environmentalists. It uses its own power station.

Greenidge Generation operates a formerly dormant plant near the shore of Seneca Lake in the Finger Lakes region to produce approximately 44 megawatts to run 15,300 computer servers, as well as additional electricity that it sends to the power grid of the state. The megawatts dedicated to Bitcoin could be enough to power more than 35,000 homes.

Proponents call it a competitive way to mine increasingly popular cryptocurrencies, without depleting the existing power grid.

Environmentalists see the plant as a climate threat.

They fear a wave of resurrected fossil fuel power plants that pump greenhouse gases more for private profit than for the public good. Seeing Greenidge as a test case, they ask the state to refuse the renewal of the air quality permit of the factories and to put a stop to similar projects.

The current state of our climate demands action on cryptocurrency mining, said Earthjustice’s Liz Moran. We are jeopardizing the ability of states to meet our climate goals, and we are preparing the ground for the rest of the country accordingly.

The former coal-fired power station, located in a tourist region known for its glacial lakes and Riesling wines, was converted to natural gas by Greenidge and began generating electricity in 2017. Bitcoin mining at l he factory, with a capacity of 106 megawatts, started in earnest the past year. The company said it is bringing part of the world’s digital future to upstate New York.

For decades, this region was told it would see new industries and opportunities, Greenidge said in a prepared statement. We actually do it and do it fully in accordance with the high environmental standards of states.

Bitcoin miners unlock bitcoins by solving complex and unique puzzles. As the value of Bitcoin increases, the puzzles become more and more difficult and require more computing power to solve them. Estimates of the amount of energy used by Bitcoin vary.

Greenidge said it mined 729 bitcoin over a three-month period ending September 30. The value of the cryptocurrency fluctuates and on Friday one bitcoin was worth over $ 59,000.

Opponents are frustrated that Greenidge asked to operate a power plant, but now operate a mine that uses more electricity.

Greenidge says mining was not part of the plan when the plant came back online and notes that it continues to provide electricity to the grid. From January to June, Greenidge said it used 58% of its electricity for mining.

Supporters see it as an economic boon to a part of upstate New York that could use this aid. Douglas Paddock, chairman of the Yates County Legislature, said in a public hearing this week that the plant has created 45 high-paying jobs and made a significant contribution to the region through tax payments and capital investments.

Some opposition to the plant focuses on the potential effects of its taking water from Seneca Lake. But air quality issues have taken center stage as the state’s Department of Environmental Conservation reviews air emissions permits from factories.

Greenidge said it is in compliance with its permits and that the plant is 100% carbon neutral, through the purchase of carbon offsets, such as forestry programs and projects that capture methane from landfills.

Opponents say the plant is undermining states’ efforts to significantly reduce greenhouse gas emissions over the coming decades under its 2019 climate law.

A grand coalition of environmental groups and other organizations this week called on Governor Kathy Hochul to deny Greenidge’s air permit and take similar action to prevent an existing factory near Buffalo from becoming a mining site. The coalition wants Hochul to set a national precedent and enact a statewide moratorium on energy-intensive proof-of-work cryptocurrency used by bitcoin miners.

Environmentalists estimate that there are 30 factories in New York City that could be converted into mining operations.

I really think more than anything, this plant is an important test of whether the state’s climate law is really worth anything, said Judith Enck, who served as regional EPA administrator for the northeastern United States under President Barack Obama.

Senators Chuck Schumer and Kirsten Gillibrand separately asked the Federal Environmental Protection Agency to monitor.

Across the country, other power plants are used for mining cryptocurrency under different types of arrangements.

In Venango County, Pennsylvania, a power plant that converts waste coal into electricity is used to mine bitcoin and can supply electricity to the grid when needed. Stronghold Digital Mining plans to replicate this type of operation at two other sites in Pennsylvania.

And in Montana, a coal-fired power plant now supplies 100% of its power to Marathon Digital Holdings for bitcoin mining under a power purchase agreement.

We had previously done what many miners do, which is you find an industrial building, fit it out for mining, and then you subscribe to grid electricity, said Fred Thiel, CEO. of Marathon. And we wanted to reverse that model because we knew there were a lot of underutilized sources of power generation in the United States.

Thiel said harmful emissions are low due to the quality of the coal and pollution controls, and the plant will be carbon offset by the end of next year. He said his company is focused on the transition to renewable energy, saying cryptocurrency miners can provide crucial financial incentives to build cleaner energy projects.

New York State has yet to make a decision on Greenidges’ permits.

Greenidge said that even if the plant is operating at full capacity, its potential emissions are equivalent to 0.23% of the state’s greenhouse gas emissions reduction target for 2030.

However, state environment commissioner Basil Seggos tweeted last month that Greenidge had failed to demonstrate compliance with New York’s climate law based on that law’s goals.

New York State is on the forefront of climate change, Seggos said in a prepared statement, and we have major concerns about the role that cryptocurrency mining may play in generating additional gas emissions. Greenhouse effect.

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