The cryptocurrency mining company Greenidge Generation has filed a lawsuit against New York’s Department of Environmental Conservation to continue to mine bitcoin at its power plant in Yates County.
Greenidge Generation burns natural gas at the plant to run machines that generate bitcoin. That process creates considerable amounts of greenhouse gasses, which contribute to climate change.
In May, the DEC upheld two previous decisions to deny the company an air permit to operate due to its emissions. The DEC found that the plant’s operations do not comply with New York’s climate law, which requires the state to reduce greenhouse gas emissions by 40% by 2030.
Now Greenidge Generation has sued the state over that decision. The company argues the DEC overreached and has incorrectly applied the climate law.
In a statement, Greenidge Generation President Dale Irwin said the company provides jobs and tax revenue for upstate New York while “meeting the state’s ambitious climate goals.”
“This is an important case for Upstate New York: for working locals who’ve waited far too long for the type of high-tech, high-paying career opportunities we continue to create,” said Irwin.
The lawsuit has drawn swift criticism from local environmental groups, who have long advocated to shutter the facility. On Tuesday, lawyers representing the advocacy groups Seneca Lake Guardian, the Committee to Preserve the Finger Lakes, Fossil Free Tompkins, and Sierra Club filed to intervene in the case. If granted, the groups would be able to participate as the case unfolds.
“The DEC has done the right thing on Greenidge three times now,” said Lisa Perfetto, an attorney at the environmental law organization Earthjustice, which represents some of the groups. “We’ll continue advocating for our clients to make sure the permit denial sticks.”
Assemblymember Anna Kelles, who represents Tompkins County, joined the groups at a virtual press conference on Thursday. She said that Greenidge Generation is trying to find legal loopholes to operate the plant.
“Nothing about the science of the environmental impact has changed whatsoever, which is why the DEC in their analysis, three times now, has said nothing has changed,” said Kelles. The company is “still not in compliance with our climate laws,” she added.
Greenidge Generation has been mining bitcoin at the power plant in Yates County since 2019. Its current permit is set to expire on September 9. But the company’s lawyer filed a motion Tuesday asking the judge for a preliminary injunction to allow it to continue to operate as the case remains ongoing.
The first court date in the case is scheduled for September 3.