Bitcoin miner Greenidge Generation has filed a lawsuit against the New York Department of Environmental Conservation (DEC) over licensing issues.
According to an Aug. 15 court filing, the company is seeking a temporary restraining order after the DEC denied its application for a Title V air quality permit for its Dresden power plant and mining facility.
The lawsuit
The DEC refused to renew the Title V air permit in June 2022, citing noncompliance with the Climate Leadership and Community Protection Act.
Greenidge’s appeal against the decision was rejected in May 2024. However, the company was granted a four-month grace period to continue operations under the existing permit until September 8.
Greenidge claims the DEC’s decision was “arbitrary and capricious.” The company argued that the DEC exceeded its authority, violated the New York State Public Service Commission’s jurisdiction over power generation facilities, and disregarded the New York Independent System Operator’s (NEO) process.
The company further argued that the regulator’s stance on shutting down the facility was based on its involvement in crypto mining, even though it provided power to the grid. Greenidge also emphasized the facility’s contribution to the state’s economy, including job creation and tax payments that support the county’s budget.
Greenidge said if the DEC’s decision is not overturned, the plant will be forced to close and cease operations by September 9.
On its website, Greenidge emphasizes that its plant in Dresden provides clean and reliable electricity to the New York power grid and will be able to supply up to 20,000 homes and businesses with electricity by 2020.
Greenidge’s Operations
The Dresden power plant is an important part of Greenidge’s operations, supporting power generation, crypto mining, and data center hosting services. Greenidge also has operations in South Carolina, Mississippi, and North Dakota.
Greenidge reported revenue of $13.1 million in the second quarter, including $4.8 million from proprietary mining and $6.6 million from crypto data center hosting. The company also earned another $1.5 million from power and capacity services.
In total, Greenidge generated $32.4 million year to date, primarily from operating its crypto data center. CEO Jordan Kovler said:
“The actions we took in the first half of 2024 have created a solid foundation that will enable Greenidge to grow efficiently as we continue to expand our business. This quarter, we delivered on our promises to significantly reduce selling and administrative expenses, expand our power capacity, and acquire and build new low-power sites where we can deploy our own miners.”
