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Calls for bitcoin production on Seneca Lake to pause over environmental impact fears


Greenidge Generation bitcoin mining facility in Dresden.{ }Calls for bitcoin production on Seneca Lake to pause over environmental impact fears (photo: CNY Central).
Greenidge Generation bitcoin mining facility in Dresden. Calls for bitcoin production on Seneca Lake to pause over environmental impact fears (photo: CNY Central).
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Elected officials, business owners, and community members in the Finger Lakes are calling for the state to deny a renewal application that allows the production of bitcoin on Seneca Lake due to environmental concerns.

The bitcoin 'mining' happens at the former power plant in Dresden in Yates County. The facility houses more than 15,000 computers owned and operated by Greenidge Generation.

The company was permitted air permits in September of 2016 that expired in September of 2021. The renewal application was submitted to the Department of Environmental Conservation and the permits were extended while being reviewed.

The state opened the permits for public comment in September and has held public comment hearings. Friday, the public comment session closed but not before community members could share their frustrations and concerns.

"This isn’t just a regional issue. This is a New York State, even a national and international issue," Joseph Campbell with the Seneca Lake Guardian said at a press conference in Geneva. "Governor Hochul and the D.E.C. have an opportunity to either uphold our climate goals or fall victim to this energy-intensive industry."

Campbell said the company wants to bring on an additional 15,000 machines by the end of this year. He said the air emissions have increased as they have added more computers.

Concerned neighbors want the state to deny the permits and put a moratorium on this form of cryptocurrency mining until an environmental review can be done. Press conferences were held in both Geneva and Albany Friday calling for this action from the state. More than 500 members of the Finger Lakes Wine Business Coalition and Seneca Lake Guardian Business Coalition presented a letter to the governor and D.E.C. addressing the environmental impacts the facility can have on the region.

Their concerns focus on the greenhouse gas emissions from the facility, the impact on the lake temperature, and the impact it could have on the Finger Lakes region. The facility production hundreds of thousands of metric tons of CO2 emissions.

Water is brought in from the lake to cool the computers and then returned to the lake at a higher temperature.

"Lake trout like it out 42 and this is coming out at 108. Next to a tributary where fish Spawn. Trout fry, small fish cannot handle 108," Kees Stapel with Boundary Breaks Wine said. "As a vineyard manager, we count on clean air to guard our vines in these cold winters. To keep them from freezing and dying. We count on our tourism industry. Clean water, people wanna come from all over the world to visit this beautiful place that we live in."

Community members held signs at the meeting in Geneva with phrases like "Gov. Hochul the climate needs you," "our house is on fire!" "Powcrypto is a global issue," and "there is no planet B."

The Finger Lakes is known for its wine production. There's a concern that this facility would impact the billions of dollars the industry brings in.

Ken Camera, fourth ward councilor in Geneva, said the impacts of the facility need to be considered on the impact of the agriculture tourism industry in the Finger Lakes. He said the state should ban all proof-of-work cryptocurrency prospectors and tell them the business is not welcome in New York.

"Plants need clean air. Our health is dependent on clean air. Our climate needs clean air," Phil Davis with Damiani Wine Cellars said. "[Greenidge} is not good nor welcomed neighbors."

Assemblymember Dr. Anna Kelles (D-125) said the impact on one lake impacts all the lakes in the region. She crafted and sponsored a bill that puts a moratorium on cryptocurrency mining operations. She doesn't think cryptocurrency is a bad thing, rather innovative and fascinating, as it could create democracy and wealth.

"What we are saying is, in the effort to create a democracy and wealth, do not destroy the planet in the process," the assemblymember covering Tompkins County and portions of Cortland County, said. "This is your moment [Department of Environmental Conservation] to prove to all of us that you stand by our state and that you stand by our laws. The CLCPA is set, it is in law and it is your responsibility to make sure that every single operation that releases [greenhouse gas] emissions align with that law. You have noted that, as of now, it does not."

The Department of Environmental Conservation said in a statement to CNY Central they have major concerns about the role cryptocurrency mining can play in greenhouse gas emission and its contribution to the state’s Climate Leadership and Community Protection Act passed.

The act passed in 2019 commits to 100% zero-emission electricity by 2040 as well as an 85% reduction in greenhouse gases by 2050.

They said Greenidge Generation "has not demonstrated compliance with the requirements of the Climate Leadership and Community Protection Act, including requirements regarding greenhouse gas emissions." They said they have not shown that it is consistent or would not interfere with the state's greenhouse gas emission limit. A final decision on the renewal application has not been determined yet. They said all comments will be reviewed.

CNY Central reached out to the governor's office and Greenidge Generation for comment and has not heard back.

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