Published: 18.04.2022
Article reading time:
2 minutes.
The New York City Department of Environmental Conservation (DEC) is preparing to revoke the license of mining company Greenidge, citing the state’s climate commitments.
DEC Commissioner Basil Seggos revealed that Greenidge is facing a tough legal battle over its bitcoin mining license:
“We are confident that this company will have an uphill battle for permission to mine cryptocurrency.”
The commissioner explained that DEC would be required to review the mining company’s application for permission to mine bitcoin. It is about licensing the Greenidge coal-fired power plant with production in Dresden, in upstate New York. The power plant redirected its power to the production of cryptocurrency.
The mining company in 2016 received permission from the supervisory authority to mine cryptocurrency, subject to compliance with carbon emission standards. This year, the company applied to the New York City Department of Environmental Protection for an extension of its mining permit.
In March 2021, Greenidge submitted a production white paper to the regulator, which included legally allowed maximum CO2 emissions.2 according to local regulations. The DEC permit allowed the emission of up to 641,000 tons of carbon dioxide per year, equivalent to the average annual electricity consumption of 116,000 private residences.
The Department of Environmental Protection is not inclined to renew the license of the mining company, as this may set a bad example for others. Environmentalists fear that if Greenidge and similar companies are allowed to mine cryptocurrencies, then the carbon footprint left by mining farms will prevent New York State from fulfilling its climate obligations to the United States.
New York State’s climate commitments are set out in the Climate Leadership and Community Protection Act (CLCPA), which was signed into law in July 2019. The CLCPA commits New York State to generate 70% of its electricity from green sources by 2030 and 100% by 2040.
Greenidge has repeatedly stated that it is fully compliant with regulations, but this has not convinced environmentalists, climate activists and local residents.
Against the background of climate commitments, New York is tightening regulation of mining activities. In March, the State Environmental Protection Committee approved a bill to ban Proof-of-Work (PoW) cryptocurrency mining for two years.
Source: Bits
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