Greenidge Generation sues NY regulator over mining permit renewal

Bitcoin (CRYPTO:BTC) miner Greenidge Generation has initiated legal action against the New York Department of Environmental Conservation (DEC) in response to the agency's decision to deny the renewal of its Title V Air Permit for its Dresden power generation and mining facility.  

This move comes as Greenidge seeks to prevent the DEC from shutting down its operations next month.  

The lawsuit, filed on August 15, includes an Article 78 petition, a legal tool in New York State that allows entities to challenge decisions made by administrative agencies.  

Greenidge is seeking declaratory and injunctive relief, arguing that the DEC's denial of their permit was unlawful.  

The conflict began in June 2022, when the DEC initially denied the renewal of Greenidge’s air permit, citing concerns that the facility’s greenhouse gas emissions did not align with the state's Climate Leadership and Community Protection Act.  

Despite Greenidge's appeals, the DEC upheld its decision in May 2024, giving the company a four-month grace period to continue operations under its existing permit until September 8.  

The Dresden facility, a 106-megawatt power plant, is crucial to Greenidge's business, supporting its proprietary mining activities and data center hosting operations.  

The plant’s potential shutdown poses a significant threat to Greenidge’s revenue, leading the company to expand its operations into South Carolina, Mississippi, and North Dakota as part of its contingency plans.  

Greenidge's legal challenge underscores the growing tension between environmental regulations and the energy-intensive demands of cryptocurrency mining.  

The outcome of this lawsuit could have broader implications for the industry, particularly in regions where regulatory pressures are increasing.