A digital currency production center in New York can continue operating after a court rejected the state’s request to close it due to concerns about climate impact.
The decision was hailed as a victory by Greenidge Generation, a large-scale digital currency mine in the Finger Lakes region that has drawn the ire of environmental and oversight groups since it began mining bitcoin four years ago.
Like other large-scale bitcoin mining operations, Greenidge relies on thousands of electricity-consuming servers that generate bitcoins by solving complex equations.
To power these servers, Greenidge uses a former coal plant that was converted to gas in 2017 after years of inactivity.
In 2022, the New York Department of Environmental Conservation (DEC) denied issuing an air quality permit for the plant, arguing that greenhouse gas emissions undermined state climate goals.
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In response to a lawsuit filed by the company, state Supreme Court Justice Vincent M. Dinolfo ruled Thursday that the agency did not give Greenidge the opportunity to justify its alleged violations, an “error of interpretation” in light of the law.
“A clear political bias was lost today,” the company said in a statement. “The decision guarantees the operation of our facilities and that our employees will not see their careers in jeopardy by a politically motivated government with no legal basis.”
However, several environmental groups allege that Greenidge is emitting large amounts of carbon dioxide while polluting nearby Seneca Lake with daily releases of hot water needed to run the plant.
“The Finger Lakes community has been sounding the alarm about the disastrous impact on water, air and climate,” said Earthjustice official Mandy DeRoche. “We will continue our fight until Greenidge closes for good.”
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When it rejected the permit, the DEC said the plant misled regulators about the true intent of the conversion.
“Rather than helping meet the State’s current electrical needs as originally described, the facility is operating primarily to meet its own energy needs,” the agency wrote in its letter to the company.
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Source: Observadora
