Finger Lakes Residents Tell Governor Hochul and DEC: No Proof Of Work Bitcoin Mining!

DRESDEN, NY (12/20/2021) (readMedia)-- Environmental activists and Finger Lakes residents are demanding the NYS Department of Environmental Conservation deny Greenidge Generation LLC's application for a Title V air permit renewal, and that Governor Hochul put a moratorium on proof of work Bitcoin mining until a thorough environmental review is conducted. The Greenidge Facility, a once-dormant power plant converted to a Bitcoin mining operation, is the test case for a growing industry with dramatic and destructive consequences for the climate and local environment.

The Greenidge Generation power plant located on the shores of Seneca Lake in Dresden, NY operated as a coal-fired power plant before it sat dormant for 7 years with zero emissions. It was then converted to a natural gas-burning peaker plant, for which it received Title V air permits.

Now, Greenidge is using those same air permits for a different operation: climate-destroying Bitcoin mining. Greenidge produces energy in order to run the 15,300 proof of work Bitcoin mining machines it houses, requiring enormous amounts of energy to run 24/7, with plans to expand. And Greenidge is just the beginning: more than 30 abandoned power plants upstate could be converted into Bitcoin mining facilities, pumping dirty greenhouse gases into the air and potentially dumping heated water into lakes, damaging aquatic life and threatening upstate's booming, $3 billion-a-year agri-tourism industry, while creating few new jobs.

"Repowering or expanding coal or gas plants to burn more fossil fuels in the middle of a climate crisis to make fake money is literally insane," said Yvonne Taylor, vice president of Seneca Lake Guardian. "Money-hungry speculators are coming to New York, pumping dirty greenhouse gases into the air, sucking the renewable energy we have from the grid, and poisoning wildlife, with very little economic benefit to the communities they are invading. New York State is supposed to be a leader in fighting climate change because of the Climate Leadership and Community Protection Act, but the impending explosion of Bitcoin mining will make our state one of climate change's biggest contributors. The DEC should not renew Greenidge's Title V air permit. And we urge Governor Hochul to put a moratorium on proof of work Bitcoin mining!"

Proof of work cryptocurrency mining is an exploding industry, and its energy use has risen 320% in just the past five years. New York hosts nearly 20% of proof of work crypto mining in the U.S. Globally, proof of work Bitcoin mining uses the same amount of energy as the entire country of Argentina. But proof of work mining is not the only way to produce Bitcoin - other forms of blockchain mining, such as proof of stake, are far more energy efficient.

The DEC itself has acknowledged that proof of work Bitcoin mining poses a threat to New York's environment and efforts to reduce greenhouse gas emissions, stating in its October 27 testimony to the NYS Assembly that "DEC recognizes that the unrestricted growth of the industry could complicate the State's ability to reduce greenhouse gas (GHG) emissions in accordance with the requirements of the Climate Leadership and Community Protection Act (CLCPA)." The CLCPA, passed in 2019, commits to an 85% reduction in greenhouse gas emissions by 2050 and 100% zero-emission electricity by 2040. Greenidge is able to sidestep many of these requirements because it is producing power for its own private use.

Earlier this month, 25 petitioners including the Sierra Club, Seneca Lake Guardian, Committee to Preserve the Finger Lakes, and more filed a preliminary injunction against Greenidge Generation to halt construction that would expand the facility. This was part of an Article 78 proceeding (Sierra Club et al. v. Town of Torrey et al.) against the Town of Torrey for their failure to properly follow State Environmental Quality Review protocol when approving Greenidge's site plan application. The Town of Torrey failed to assess the impacts of their machines, noise, air emissions, potential for increased water withdrawal, thermal discharge, or possibility of Harmful Algal Blooms.

"New York State simply can't deny the Title V air permits for gas power plants like Danskammer and Astoria that would benefit our electrical grid and then turn around and approve a gas power plant for the purpose of cryptomining" said Eric Wood, Campaign Organizer for NYPIRG (New York Public Interest Research Group). Wood added "We are excitedly awaiting the announcement of the Department of Environmental Conservation (DEC) of their denial of the Greenidge Title V permits as it will set a bar for all "proof of work" cryptominers that had their eyes on New York as a potential destination for their operations."

"The original Title V air permit for the Greenidge fracked gas plant was issued without any mention or analysis of Bitcoin mining or the environmental impacts that come with such operations. This needs to be remedied through DEC's air permit renewal process," said Roger Downs, conservation director for the Sierra Club Atlantic Chapter. "If the gap in regulation for behind-the-meter Proof of work cryptocurrency operations is not closed by Governor Hochul, this kind of digital partnership could soon be an integral part of every power plant operating in NY – which could profoundly derail state's ability to comply with our climate goals."

"Crypto-mining is a direct threat to New York's climate goals," said Food & Water Watch Senior Organizer Eric Weltman. "New York has already banned fracking, and Governor Hochul and her DEC have drawn a clear line in the sand on fracked gas plants, stopping repowerings at both Danskammer and Astoria NRG. Let's not allow crypto-mining to undo those critical moves off fossil fuels. It's time for Governor Hochul to deny Greenidge its pollution permits, and it's time to pass a moratorium on crypto-mining now."

"Governor Hochul faces an important decision for New York regarding energy-intensive cryptocurrency mining and New York's climate goals - and it starts with the Greenidge Facility. Greenhouse gas emissions from Greenidge have been dramatically increasing, and will only continue to do so if the company expands their operations, as they have stated their plan to do," said Liz Moran, New York Policy Advocate for Earthjustice. "We join hand in hand with residents of Seneca Lake and communities across the state in calling on the Governor and the Department of Environmental Conservation to deny the Title-V permit for Greenidge."