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One hurdle to large-scale bitcoin mining is finding enough cheap energy to run huge, power-hungry computer arrays that create and process cryptocurrency. A mining operation in downtown New York has come up with a new solution that has alarmed environmentalists. He uses his own switchboard.
Near the shores of Seneca Lake in the Finger Lakes region, Greenidge Generation operates a once-secure facility to generate approximately 44 megawatts of power to run 15,300 computer servers, as well as the additional electricity it sends to the state’s power grid. Megawatts dedicated to Bitcoin could be enough electricity to power more than 35,000 homes.
Proponents call it a competitive way to mine increasingly popular cryptocurrencies without damaging the existing power grid.
Environmentalists view the plant as a climate threat.
They fear a resurgent wave of fossil fuel power plants pumping greenhouse gases for private profit rather than the public good. to see Greenidge As a test case, they’re asking the government to refuse renewal of the facility’s air quality permit and put the brakes on similar projects.
“The current state of our climate requires action on cryptocurrency mining,” said Liz Moran of Earthjustice. “We are jeopardizing the ability of the state to meet our climate goals and as a result, we are laying the groundwork for the rest of the country.”
Located in a tourist area known for its glacial lakes and riesling wines, the former coal power plant was converted to natural gas by Greenidge and started electricity generation in 2017. Bitcoin mining has finally started in earnest at the power plant with a capacity of 106 megawatts. year. The company said it brought “a piece of the world’s digital future” to New York.
“We have been told for decades that this region will see new industries and opportunities” Greenidge said in a prepared statement. “We actually do that, and we do it entirely within the state’s nation-leading high environmental standards.”
Bitcoin miners unlock bitcoins by solving complex, unique puzzles. As Bitcoin’s value increases, the puzzles become increasingly difficult and require more computing power to solve them. Estimates of how much energy Bitcoin uses vary.
Greenidge He said he had mined 729 bitcoins in the three months ending September 30. The value of the cryptocurrency is fluctuating, and on Friday, one bitcoin was above $59,000.
opponents are angry Greenidge applied to operate a power plant, but currently operates a mine that takes more of the power of the plant.
Greenidge He says that when the facility is back up and running, mining is not part of the plan, and that they continue to power the grid. From January to June, Greenidge He said he used 58% of his power for mining.
Supporters see it as an economic boon in parts of New York that could use the aid. Douglas Paddock, chairman of the Yates County Legislature, said at a public hearing this week that the facility has brought in 45 high-paying jobs and made a “significant contribution” to the region through tax payments and capital investments.
Some opposition to the facility focuses on the potential effects of water withdrawal from Seneca Lake. However, air quality issues have come to the fore as the State Department of Environmental Protection has reviewed the facility’s air emission permits.
Greenidge He said the facility is 100% carbon neutral thanks to the purchase of carbon offsets, such as forestry programs and projects that capture methane from landfills.
Opponents argue that the facility undermines government efforts to significantly reduce greenhouse gas emissions in the coming decades under the 2019 climate law.
A large coalition of environmental groups and other organizations asked Governor Kathy Hochul this week to refuse the air permit. Greenidge and taking similar action to prevent an existing facility near Buffalo from becoming a mine site. The coalition wants Hochul to set a “national precedent” and enact a statewide moratorium on the energy-intensive “proof-of-work” cryptocurrency used by bitcoin miners.
Environmentalists estimate there are 30 factories in New York that could be turned into mining operations.
“I really think more than anything, this plant is an important test of whether the state’s climate law is really worth anything,” said Judith Enck, who served as the EPA’s regional northeast U.S. director under President Barack Obama.
You s. Chuck Schumer and Kirsten Gillibrand have separately requested surveillance from the federal Environmental Protection Agency.
There are other power plants around the country that are used to mine cryptocurrencies under different regulations.
In Venango County, Pennsylvania, a manufacturing facility that converts coal waste into power is used to mine bitcoin and can supply electricity to the grid when needed. Stronghold Digital Mining It plans to repeat this type of operation at two other facilities in Pennsylvania.
And in Montana, a coal-fired generating station now supplies 100% of its energy to Marathon Digital Holdings for bitcoin mining under an energy purchase agreement.
“We’ve done what many miners have done before, so you find an industrial building, you set it up for mining, and then you contract it to get power from the grid,” said Fred Thiel, Marathon CEO. “And we wanted to turn that model upside down because we knew there were a lot of underutilized power generation resources in the US.”
Thiel said harmful emissions are low due to the quality of the coal and pollution controls, and that the plant will offset carbon by the end of next year. He said his company is focused on moving towards renewable energy and that cryptocurrency miners can provide crucial financial incentives to build cleaner energy projects.
The state of New York has yet to make a decision. Greenidge‘ permissions.
Greenidge He said even if the plant is operating at full capacity, its potential emissions are equivalent to 0.23% of the state’s target to reduce greenhouse gas emissions for 2030.
However, state Environment Commissioner Basil Seggos tweeted last month:Greenidge It didn’t comply with NY’s climate law”, based on the goals in that law.
“The state of New York is at the forefront of climate change,” Seggos said in a prepared statement, “and we have some major concerns about the role that cryptocurrency mining might play in generating additional greenhouse gas emissions.”
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