Bitcoin mining plant accused of turning New York lake into a hot tub

A new gas-fired power plant run for the purpose of mining bitcoin has been accused of turning a lake in New York into a “hot tub”.

Private equity firm Atlas Holdings is running the gas-fired plant facility near Seneca Lake, the largest of the Finger Lakes in upstate New York, NBC News reported.

The operators of the facility, Greenidge Generation LLC, are said to have increased the electrical power output at the plant in the name of mining Bitcoin, prompting protests from residents.

“The lake is so warm you feel like you’re in a hot tub,” Abi Buddington, a resident of Dresden, New York who lives near the plant told NBC News.

Bitcoin, a digital currency, is “mined” by using high-power computers to generate new units by solving masses of mathematical equations.

Lots of energy is needed to run the machines to support their massive processing power, meaning their plants can add significantly to carbon emissions.

The Greenidge plant holds at least 8,000 computers and is looking to install more, the broadcaster said. Such computers also require massive cooling, using water from the lake.

NBC News reports that the plant’s current permit allows Greenidge to consume 139 million gallons of water daily while discharging 135 million gallons back into the lake.

Local residents have rallied against what they say are rising temperatures and were seen outside a Department of Environmental Conservation office in Avon, New York on Monday.

Critics argue that the plant undermines the state’s fossil fuel commitments and will also have a knock-on impact on climate change.

“New York had established a goal in law of reducing greenhouse gas emissions by 40 per cent by 2030,” Judith Enck, a former EPA regional administrator told NBC News.

She added: “The state will not reach that goal if the Greenidge Bitcoin mining operation continues.”

Jeff Kirt, the chief executive officer of Greenidge said the plant is operating within its federal and state environmental permits and said “the environmental impact of the plant has never been better than it is right now.”

The company declined to comment on Ms Enck’s statement when contacted by NBC News.

Greenidge began using the plant for Bitcoin mining and hiked its output in 2019 and is only intending to expand further, and despite being natural gas-fired, they are still emitting damaging greenhouse gases

By the end of 2020, the plant’s carbon dioxide equivalent emissions sat at 243,103 tons, an increase from 28,301 tons in January, NBC News said, citing open record documents obtained by environmental non-profit Earth Justice.

Environmental authorities have reportedly determined that the plant “does not have a significant impact on the environment”, according to materials held by the company.

A Greenidge spokesperson also told the broadcaster that “limits already protect the lake’s fishery and the public health, and they have been clearly validated as not concerning”.

Greenidge has said that its operations would soon be carbon neutral in the last month through the use of carbon offsets.

Mandy DeRoche, deputy managing attorney in the coal programme at Earth Justice, says they are asking the Department of Environmental Conservation to take a “hard look” at Greenidge’s air permit, which is up for renewal in September.

“We’ve asked the Department of Environmental Conservation to take a hard look and think about it as a new permit not just a renewal,” she said.

The Independent did not immediately hear back from Greenidge regarding a request for further comment.