Environmental activists filed a lawsuit against the New York Public Service Commission (PSC) on January 13 for allowing the takeover of a cryptocurrency mining plant in the state.
The plant is situated in Tonawanda, a community less than 16 kilometres from Niagara Falls, and was scheduled to be acquired by the Canadian cryptocurrency mining company Digihost.
Plaintiffs said that the approval breaches the 2019 New York climate legislation. The Climate Leadership and Community Protection Act (CLCPA) establishes, among other goals, a reduction of 85% in statewide emissions by 2050 and the production of energy with zero emissions by 2040.
The Clean Air Coalition of Western New York and the Sierra Club are represented in the case by the non-profit Earthjustice, which asserts that the Fortistar facility was only activated during times of high energy demand, such as during severe weather. As a cryptocurrency mining facility, the location would be operational 24 hours a day, producing up to 3,000% greater greenhouse gas emissions.
Activists say that the state of New York must perform environmental studies when evaluating proposed developments.
In a letter to the state government dated October 2021, a coalition of local businesses argued against turning the power plant into a cryptocurrency mining operation.
“Proof-of-Work crypto mining requires a great deal of electricity to run the computers, its growth in New York may severely compromise the state’s efforts to meet the climate targets set out in the Climate Leadership and Community Protection Act.
Since crypto mining requires a great deal of electricity to run the computers required for commerce, its growth in New York may severely compromise the state’s efforts to meet the climate targets set out in the Climate Leadership and Community Protection Act.
According to public records, Digihost intended to lessen the facility’s environmental effect by converting it to renewable natural gas.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.