Crypto-mining could be the next big environmental threat in Pennsylvania

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While cryptocurrency has received some national attention in recent years with television commercials and various financial scandals, the environmental consequences of some cryptocurrencies – which are mined – have largely slipped under the radar. So far.

The New York Times recently published a damning expose on the significant environmental and climate impacts of bitcoin mining, pulling back the curtain on an industry operating in a black box.

The Times identified the 34 largest crypto mining sites in the United States and determined that they use as much energy as three million homes. Two of those sites are here in Pennsylvania. The impact of this energy-intensive industry on air quality is only getting worse.

And if we turn a blind eye, crypto-mining could very well become the next big pollution crisis in Pennsylvania.

One of the many misconceptions about the proof of work crypto mining industry is how it is powered. It is often believed that cryptocurrency mining is simply people on their personal computers – but this is rarely the case.

Crypto-mining involves millions of machines competing to solve complex problems to generate a new unit of digital currency. As more and more mining machines compete, the electricity needed to win increases exponentially. As a result, mining companies regularly turn to fossil fuels to generate their electricity. It happens in our backyard and with virtually no supervision.

In northwestern Pennsylvania, an oil and gas operator, Diversified Energy, has installed gasoline-powered generators at one of its existing gas well pads to power crypto-mining operations in Pennsylvania County. ‘Elk.

To make matters worse, the plant began cryptomining operations without the necessary clearances from the Pennsylvania Department of Environmental Protection (DEP), leading to noise complaints; Crypto mining is not only energy intensive, but also extremely noisy.

A group of environmental organizations urged the agency to withdraw its planned approval of Diversifieds’ permit to install the generators – citing Diversifieds’ long history of continuous and unresolved permit violations.

Two things are clear: this industry currently operates in a black box with little regulation and oversight, and its many environmental impacts must be taken seriously.Joseph Otis MinottClear Air Council

Shortly after, the DEP confirmed that Diversified had started operations before obtaining the required permits, stating that Diversified is required by law to obtain a plan approval from the DEP before the sources are installed and operated. of air contamination.

Proponents of crypto-mining even float the idea of ​​operating on orphan oil and gas wells to generate currency. Pennsylvania is ground zero for the orphan well crisis, with approximately hundreds of thousands of unplugged wells scattered across the state that were drilled a long time ago and have no solvent or identifiable owner.

These wells – the vast majority of which are currently undocumented – release methane and other toxic pollutants into the air and groundwater.

Remediation efforts have been identified as a top priority by the Shapiro administration and will be supported by approximately $400 million in federal grants from the bipartisan Infrastructure Act. But the idea that a highly mobile crypto-mining operation, in a highly volatile industry, would try to restart production from these old pits – with no idea of ​​the dangerous environmental impact – is alarming.

Proof of work Crypto-mining companies are not only turning to gas, they are also acquiring old coal-fired power plants. Just as it seems, these factories burn piles of coal waste that has been left over from coal mining operations to generate electricity.

In the past two years alone, Stronghold Digital Mining Inc. has started operating two coal-fired power plants and installed 57,000 cryptocurrency mining machines across Pennsylvania. Their sites include the 94 MW Scrubgrass Generating Station in Venango County and the 94 MW Panther Creek Facility in Carbon County. Local air pollution – emissions of sulfur dioxide and nitrogen oxides – at Panther Creek skyrocketed in 2022 after the switch to crypto-mining.

To put it simply, the expansion of dirty, fossil fuel-powered cryptocurrency mining will undermine Pennsylvania’s efforts to reduce both local air pollution and greenhouse gas emissions, which fuel the climate crisis. Air pollution continues to be one of the greatest environmental threats to public health. The combustion of coal and frac gas, regardless of their use, leads to increased levels of sulfur dioxide, nitrogen oxides and toxic substances in the air.

Two things are clear: this industry currently operates in a black box with little regulation and oversight, and its many environmental impacts need to be taken seriously.

To its credit, the Pennsylvania House Environmental Resources and Energy Committee recently held a public hearing focused on cryptocurrency and climate change, drawing much-needed attention to the impacts of crypto-mining on energy consumption and climate change. environment of our States, as well as on potential solutions.

Pennsylvania has made strides in protecting our air quality and environment over the past few decades with much more work to do – let’s not allow crypto to undo that.

Pennsylvania Capital-Star is part of States Newsroom, a grant-supported network of news outlets and a coalition of donors as a 501c(3) public charity. Pennsylvania Capital-Star maintains editorial independence. Contact editor John Micek with any questions: [email protected]. Follow Pennsylvania Capital-Star on Facebook and Twitter.

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