Cryptocurrency mining is booming, but not all mining operations are booming in the same way.
A controversial crypto-mining facility near Seneca Lake, New York, is still running through its own natural gas power plant despite state regulators repeatedly denying its air permit. The plant's operators keep fighting to stay open even as experts warn of its climate impact.
What's happening?
Greenidge has been using legal appeals to continue operating its crypto-mining facility after New York state denied approval of its air permit, reported the Ithaca Times.
An air permit authorizes how much air pollution a facility can release. The New York Department of Environmental Conservation originally denied Greenidge's air permit renewal in 2022, but Greenidge appealed the decision — not once, but multiple times.
The DEC has maintained its stance with each appeal, noting that the company doesn't comply with the state's Climate Leadership and Community Protection Act. CLCPA targets reducing polluting gases by 85% of 1990 levels by 2050.
Greenidge's reasons for appealing are two-fold. According to the Ithaca Times article, the company insists that its investments in carbon reduction projects offset the carbon pollution it produces. Greenidge also believes that CLCPA guidelines shouldn't be able to dictate the DEC's permit decisions.
Those fighting to shut down the plant, however, essentially maintain that such efforts shouldn't distract from the fact that there is a high-polluting plant right in their own community that does not directly serve many of their residents.
"This is like being in purgatory," said Seneca Lake Guardian co-founder Yvonne Taylor. "We keep winning, but Greenidge keeps finding ways to fight dirty and prolong the process."
Why is this concerning?
Crypto mining eats up as much as 2.3% of U.S. energy consumption, although there are many mitigating factors at play such as the fact that many mining operations run on excess power that would otherwise be wasted, something Greenidge does not do.
Many crypto companies also produce their own renewable energy, a smart investment since it drives down costs over the longer term. That said, research from the International Monetary Fund found that crypto mining could produce 0.7% of global carbon pollution by 2027.
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The DEC has continuously denied Greenidge's appeals for good reason: The facility doesn't align with the state's anti-pollution agenda. Despite its efforts to offset that critics say largely amount to greenwashing, Greenidge produced about the same amount of pollution as 84,000 vehicles in 2023 alone, according to New York assemblymember Anna Kelles.
The problem is that the facility can legally continue to operate through the appeals process and contribute to the harmful effects of crypto mining.
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Definitely 🥰 "Greenidge is trying to gut New York's climate law" by continuing to appeal, warned Taylor. Kelles added that Greenidge has intentionally used its appeals to "drag out" the process and continue to profit while placing the environment on the back burner.
What's being done to rein in crypto mining's pollution?
Many states have proposed climate regulations similar to New York's that impact the crypto-mining industry. For example, an Arkansas bill aims to reduce the amount of water and electricity crypto-mining facilities use. Texas requires crypto-mining facilities to register with the state grid operator if they use more than 75 megawatts of power, according to an article from the Texas Tribune.
While these efforts signal progress, environmental advocates are calling for stronger regulations and tighter loopholes to prevent crypto mining from roadblocking climate goals. Incentivizing sustainable crypto-mining companies could also reduce the industry's impact on the environment.
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