Greenidge Generation Fights New York Agency Over Dresden Power Plant Permit
Bitcoin mining company Greenwich Generation has filed a lawsuit against the New York Department of Environmental Protection (DEC) over permitting issues.
According to documents filed with the court on Aug. 15, the company sought the injunction after DEC denied its application for a Title 5 air permit for its Dresden power and mining facility.
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DEC denied renewal of Title 5 air permit in June 2022 for noncompliance with the Climate Leadership and Community Protection Act.
Greenidge’s appeal against the decision was dismissed in May 2024. However, the company was given a four-month grace period to continue operating under its existing permit until September 8.
Greenidge claims DEC’s decision was “arbitrary and capricious.” The company claims DEC overstepped its authority, usurped New York State Public Service Commission jurisdiction over electric generating utilities, and disregarded New York Independent System Operator procedures.
The company also argued that regulators’ stance on shutting down the facility was because of its involvement in cryptocurrency mining, despite its role in providing electricity to the grid. Greenidge also highlighted the facility’s contributions to the state’s economy, including creating jobs and paying taxes that support the county budget.
Greenwich said it would have to close the facility and cease operations by September 9 if DEC’s decision is not reversed.
Greenidge emphasized on its website that the Dresden facility provides clean, reliable power to New York’s energy grid, enough to power up to 20,000 homes and businesses as of 2020.
Greenidge’s Operations
The Dresden plant is a vital part of Greenidge’s operations, supporting power generation, cryptocurrency mining, and data center hosting services. Greenidge also operates in South Carolina, Mississippi, and North Dakota.
Greenidge reported revenue of $13.1 million in the second quarter, of which $4.8 million came from self-mining and $6.6 million from crypto data center hosting. The company also earned an additional $1.5 million from power and capacity services.
Overall, Greenidge has generated $32.4 million so far this year, primarily from its crypto data center operations. CEO Jordan Kovler said:
“The actions we took in the first half of 2024 have laid a strong foundation for Greenidge to grow efficiently as we continue to scale our business. This quarter, we delivered on our commitment to significantly reduce SG&A, expand our power capacity, and acquire and build new low-power sites where we can deploy our own miners.”
