Greenidge Generation's Legal Battle to Keep Bitcoin Mining Plant Open

In a bid to block a regulatory order to close its Finger Lakes power plant used for bitcoin mining, Greenidge Generation LLC has filed suit against the New York State Department of Environmental Conservation (DEC). The DEC has mandated the company to shut down the Greenidge Generating Station in Torrey, Yates County by September 9.

Background of the Case

The lawsuit, filed on August 15, is the latest chapter in an ongoing conflict between Greenidge and state environmental regulators. The facility, built in the 1930s, transitioned from a coal-fired plant to a bitcoin mining operation in 2019. The DEC denied Greenidge's application to renew its air permit in June 2022, citing concerns that continued operations would conflict with New York’s greenhouse gas limits as established by the 2019 Climate Leadership and Community Protection Act.

Environmental Concerns

Greenidge’s cryptocurrency mining operations have faced criticism from various environmental and citizen groups, who argue that it poses significant environmental hazards and threatens the Finger Lakes region’s agritourism economy. The DEC's ruling highlighted a significant increase in greenhouse gas emissions since the plant began mining operations, primarily driven by its shift from providing energy to the state’s grid to supporting energy-intensive mining activities.

Greenidge's Response

In response to the DEC's decision, Greenidge criticized the ruling as “arbitrary and capricious.” The company contends that the DEC has overstepped its jurisdiction and misinterpreted the Climate Act. Greenidge proposed to reduce its emissions by 40% by 2025 and achieve zero-carbon emissions by 2035, seeking to demonstrate its commitment to environmental responsibility.

Legal Actions and Implications

The lawsuit requests the court to:

• Annul the DEC's denial of the air permit renewal.
• Declare that the DEC misapplied provisions of the Climate Act.
• Confirm that the DEC lacks authority to deny a renewal permit for existing facilities.
• Prevent the DEC from forcing the plant's closure.

Opposing groups, including Seneca Lake Guardian and Sierra Club, have sought to intervene in the case, arguing for the protection of the Finger Lakes region from pollution.

Financial Stakes

The stakes are high for Greenidge Generation Holdings Inc., which reported a net loss of $9.5 million in the last six months. The company’s stock has plummeted over 75% from its 52-week high, reflecting concerns about its future viability amid ongoing legal battles and regulatory scrutiny.

A hearing is set for September 3 in Yates County, where the court will consider the future of Greenidge's operations and its implications for both the environment and the cryptocurrency market.