New York sued by environmental group after approval of crypto mining facility: report

The New York Public Service Commission (PSC) was sued by environmental activists on Jan. 13 for approving the purchase of a cryptocurrency mining facility in the state.

The state’s Public Service Commission (PSC), which is responsible for regulating utilities, has approved the conversion of the Fortistar North power plant into a cryptocurrency mining site in September 2022, according to The Guardian.

The facility, located in Tonawanda, a city less than 10 miles from Niagara Falls, was to be taken over by Canadian cryptocurrency mining company Digihost.

Plaintiffs allege that the approval violated New York’s 2019 Climate Act. The Climate Leadership and Community Protection Act (CLCPA) has set goals such as reducing statewide emissions by 85% by 2050 and zero-emission electricity by 2040.

The lawsuit, represented by the Western New York Clean Air Coalition and the Sierra Club by the nonprofit Earthjustice, alleges that the Fortister plant only operated during times of high demand for electricity, including extreme weather conditions. increase. However, as a crypto mining factory, the site he operates 24 hours a day and emits up to 3,000% more greenhouse gases.

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Activists argue that New York State must conduct environmental reviews when considering projects.

In October 2021, a letter from a group of local businesses called on the state to refuse to convert the power plant into a cryptocurrency mining facility, claiming:

“Proof-of-work cryptocurrency mining uses vast amounts of energy to power the computers needed to run a business. As this activity expands in New York, the Climate Leadership and Safeguarding Communities Act will be implemented. It could seriously undermine New York’s climate goals established under the

Digihost planned to convert the facility to renewable natural gas to reduce its environmental impact, according to public documents. The company also noted that the mining site has been approved by the North Tonawanda Planning Commission and undergoes an environmental review before making any decisions.

According to Cointelegraph, Digihost also revealed plans in August to move some of its mining rigs from New York to Alabama to lower energy costs.

Digihost did not immediately respond to Cointelegraph’s request for comment.