Saturday, November 16, 2024

Cryptocurrency Firm Files Lawsuit Against New York DEC in Effort to Keep Finger Lakes Power Plant Running

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Greenidge Generation, a cryptocurrency mining company, is at the center of a legal battle with New York’s Department of Environmental Conservation (DEC) over its bitcoin mining operations at a power plant in Yates County. The company burns natural gas to power machines that generate bitcoin, a process that emits significant amounts of greenhouse gases contributing to climate change.

In May, the DEC upheld its decision to deny Greenidge Generation an air permit to operate due to its emissions, citing non-compliance with New York’s climate law, which aims to reduce greenhouse gas emissions by 40% by 2030. The company has now filed a lawsuit against the state, arguing that the DEC overreached and misapplied the climate law.

Greenidge Generation President Dale Irwin defended the company’s operations, stating that they provide jobs and tax revenue for upstate New York while claiming to meet the state’s ambitious climate goals. Irwin emphasized the importance of the case for the local community, highlighting the high-tech and high-paying career opportunities the company creates.

However, the lawsuit has faced criticism from local environmental groups who have long advocated for the closure of the facility. Organizations such as Seneca Lake Guardian, the Committee to Preserve the Finger Lakes, Fossil Free Tompkins, and Sierra Club have filed to intervene in the case, aiming to ensure that the permit denial stands.

Lisa Perfetto, an attorney at Earthjustice representing some of the environmental groups, emphasized the importance of upholding the DEC’s decision, stating that they will continue to advocate for their clients throughout the legal proceedings. Assemblymember Anna Kelles also joined the groups in condemning Greenidge Generation’s attempts to find legal loopholes to operate the plant, emphasizing that the company remains non-compliant with climate laws.

Greenidge Generation has been mining bitcoin at the power plant since 2019, with its current permit set to expire on September 9. The company’s lawyer has filed a motion requesting a preliminary injunction to allow operations to continue while the case unfolds. The first court date in the case is scheduled for September 3, marking the beginning of what is likely to be a contentious legal battle over the future of cryptocurrency mining in New York.

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