1 Year After Losing Permit, Greenidge Greets FLX Tourists With Flared Gas and Poisonous Air

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DRESDEN, NY (06/21/2023) (readMedia)-- On Friday June 16, Saturday June 17, and Tuesday June 20, Greenidge Generation – the climate-killing Bitcoin mine on Seneca Lake with a denied air permit – flared polluting gas into the air. See video of the gas flare here, including the flare's high-pitched shrieking sound. See more video and pictures attached.

"This holiday weekend, tourists flocked to the Finger Lakes only to be greeted with smokestacks shooting toxic, poisonous fire into the air with a piercing screech. The Finger Lakes is known for our world-class riesling, and our winemakers were stuck serving it with a side of soot. Next week marks a year since the Department of Environmental Conservation denied Greenidge's air permit, but Greenidge is still threatening our climate, environment, and 60,000-employee local economy. Finger Lakes residents and business owners have long agreed: It's past time to get out, Greenidge!" said Yvonne Taylor, Vice President of Seneca Lake Guardian.

A 2022 study found that gas flares produce PM 2.5, the same type of air pollution that shrouded New York as a result of the Canadian wildfires earlier this month, nearly doubling NYC asthma-related emergency room visits. PM 2.5 is linked to a number of health problems including asthma, heart disease, and other respiratory illnesses. Noise pollution also comes with its own health risks – according to a recent report in the New York Times, it's a largely unrecognized health threat that is increasing the risk of hypertension, stroke and heart attacks worldwide, including for more than 100 million Americans.

The issues caused by flared gas only add to the existing climate, environment, and economic damage Greenidge causes. With over 17,000 Bitcoin machines and operations underway to expand to 32,500, Greenidge is on track to emit over one million tons of CO2 each year, equivalent to that of 100,000 homes, at a time when New York's climate law requires us to reduce greenhouse gas emissions.

Greenidge has been operating on a denied permit since June 30, 2022, when after more than a year of advocacy by residents, business owners, wine makers, environmental activists, and elected officials, the New York State Department of Environmental Conservation (DEC) denied Greenidge Generation a renewal of its Title V Air Permit. But Greenidge is still allowed to operate while it appeals the decision.

Meanwhile, Greenidge is undergoing financial troubles. Its CEO abruptly stepped down in October 2022, and Atlas Holdings, the Connecticut-based private equity firm that owns Greenidge, replaced him with a pair of executives affiliated with the firm. Greenidge later expressed concern that it would run out of cash by March 2022, leading the company to restructure its debt. It is now mining Bitcoin in order to pay back its lenders, and on June 15, 2023 received notice delisting from the NASDAQ.

New Yorkers from upstate and downstate and everywhere in between have fought hard against Greenidge and cryptomining plants. Next week, to mark Greenidge's one year "anniversary of shame" of the plant's permit denial, advocates will rally to shut Greenidge down.

• Upstate advocates will gather on Wednesday, June 28 at 11:30 a.m. at the Gazebo in front of the Geneva Welcome Center 6/28
• NYC advocates will gather on Thursday, June 29 at 11 a.m. at the Wall Street Bull

Further details about both events to come.

Background

New York is the first state to regulate cryptomining, with the historic cryptocurrency mining moratorium that passed in November 2022 and implemented a two-year pause on new and renewed air permits for fossil-fueled power plants that mine cryptocurrency. But this does not apply to Greenidge Generation, which applied for its air permit before the law took effect.

But before the moratorium passed, on June 30, 2022, after more than a year of advocacy by residents, business owners, wine makers, environmental activists, and elected officials, the New York State Department of Environmental Conservation (DEC) denied Greenidge Generation a renewal of its Title V Air Permit. Greenidge has been operating as a 24/7 proof-of-work cryptocurrency mining facility for Bitcoin under grandfathered in permits for other usage.

Proof-of-work cryptocurrency mining is an extremely energy intensive process that threatens the ability of governments across the globe to reduce our dependence on climate-warming fossil fuels. Mining requires thousands of machines whirring 24/7 to solve complex equations. The more machines that are running, the faster a coin is mined. Each one of these machines requires energy to run, plus more energy for cooling. According to a new Guidebook from Earthjustice and the Sierra Club, from July 2021-22 Bitcoin mining in the U.S. alone consumed as much electricity as four states combined, emitting as much as 6 million cars annually. The White House's Office of Science and Technology Policy recently put out a groundbreaking report that confirms proof-of-work cryptomining is incompatible with federal and local emissions reductions goals, and it cannot continue unabated.

Cryptocurrency mining facilities are major emitters of air pollutants. And when cryptocurrency miners rely on the public grid, they can stick everyday people with the bill. A 2021 study estimates "the power demands of cryptocurrency mining operations in upstate New York push up annual electric bills by about $165 million for small businesses and $79 million for individuals." Powering Bitcoin mining with renewables is not a viable solution, as renewables supply cannot possibly meet the extreme energy demands of Bitcoin mining in addition to daily necessities such as heating and cooling homes and running cars. Any renewable energy that supports Bitcoin mining is renewable energy that is being diverted from the public grid.

At an Environmental Conservation budget hearing when asked about the potential impact of the escalating cryptocurrency mining activity in upstate NY on the states energy grid, the NYS Energy Research and Development Authority (NYSERDA) President Doreen Harris stated, "There could be a very significant impact on NY load resulting from cryptocurrency mining depending on the penetration of the resource."

Cryptomining is also at odds with the overwhelmingly popular amendment to the state constitution passed last year, which guarantees every New Yorker the right to clean air, clean water, and a healthful environment. Revitalizing old polluting power plants for private financial gain, with drastic consequences for our air, water and climate, all while causing huge amounts of noise pollution, is now unconstitutional - and ought to be treated as such.

About Seneca Lake Guardian

Seneca Lake Guardian is a New York State Not-for-Profit Corporation with 501(c)(3) and is dedicated to preserving and protecting the health of the Finger Lakes, its residents and visitors, its rural community character, and its agricultural and tourist related businesses through public education, citizen participation, engagement with decision makers, and networking with like-minded organizations.