Environmentalists call for revocation of Greenidge Generation’s operating permit

Environmental advocates and New York Assembly member Anna Kelles have urged Governor Kathy Hochul to revoke Greenidge Generation’s mining permit, according to CoinDesk.

Kelles is the sponsor of a bill introducing a two-year moratorium on cryptocurrency mining powered by electricity generated from carbon-based sources. In late April the measure was endorsed by the lower chamber of the State Assembly, and on June 3 by the Senate. It would take effect upon the governor’s signature.

The initiative would freeze current carbon-emission levels from mining. Existing operators or those in the process of obtaining permits for digital-asset mining would be allowed to continue operating. Over the two-year period authorities plan to study the potential environmental impact of mining on the Proof-of-Work algorithm.

According to the report, at the press conference the environmentalists also asked Hochul to deny the operating permit for blockchain hosting provider Digihost Technologies.

In 2021, the company entered into an agreement with Bitcoin miner Bit Digital to provide space for storage and operation of equipment for cryptocurrency mining with a capacity of 20 MW.

In May 2022, Bit Digital reported the disconnection of about 1,580 devices located in New York. According to the statement, Digihost Technologies cited the need for additional approvals from authorities.

As of this writing, representatives of the hosting provider had not commented on the environmentalists’ demands, unlike Greenidge Generation. In a press release, the company stressed that the bill’s provisions do not apply to its operations:

«The bill text itself states, and its author [Kelles in comments WSJ] confirmed that the law will not be applied to Greenidge’s operations. […] The renewal application was filed on March 5, 2021 and acknowledged by the New York State Department of Environmental Conservation in 2021. Thus, this bill will not affect the Greenidge facility», the statement said.

Earlier the mining company faced allegations of environmental violations. In April 2022, the state Supreme Court denied the motion to halt construction of Greenidge Generation facilities near Seneca Lake, finding no adverse environmental impact.

As previously noted, Vitalik Buterin, Castle Island Ventures’ general partner Nick Carter, and other members of the community criticized the moratorium on Bitcoin mining in New York.

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