Despite climate concerns, NY judge keeps bitcoin mining facility open

NEW YORK CITY, New York: A court has ruled in favor of Greenidge Generation, allowing the cryptocurrency mining facility in central New York's Finger Lakes region to continue operations despite state efforts to shut it down over climate concerns.

The dispute centered on Greenidge's air permit, which the New York Department of Environmental Conservation (DEC) denied in 2022. The DEC cited the plant's greenhouse gas emissions as incompatible with the state's climate goals. However, State Supreme Court Justice Vincent M. Dinolfo ruled that the agency failed to provide Greenidge an opportunity to address the alleged violations, calling it a legal misstep.

Greenidge, which operates a converted natural gas power plant to run thousands of energy-intensive bitcoin-mining servers, hailed the decision as a win against "politically motivated governmental overreach." The company argued that shutting the facility would unfairly jeopardize local jobs and businesses reliant on its operations.

Environmental groups, however, decried the ruling, accusing Greenidge of damaging the Finger Lakes region's air and water. Critics allege the plant emits millions of pounds of carbon dioxide annually and discharges heated water into nearby Seneca Lake, affecting local ecosystems.

"The Finger Lakes community has been sounding the alarm on the disastrous impacts of this facility," said Mandy DeRoche of Earthjustice. "We will continue our fight until Greenidge shuts down for good."

Greenidge insists it is compliant with environmental standards, maintaining that the plant is carbon neutral through the purchase of offsets, such as forestry programs and methane capture projects.

The DEC accused the facility of misleading regulators, claiming that instead of contributing electricity to the state grid as initially proposed, the plant primarily serves its energy-hungry bitcoin-mining operations. Environmental advocates argue this undermines the state's broader climate initiatives.

Yvonne Taylor of the Seneca Lake Guardian called the plant a "test case" for New York's ability to enforce climate laws. "This facility serves no public purpose except enriching a few people while harming our community and environment," she said.