Residents Frustrated Over Local Gas-Fired Power Plants

A group of residents in the Finger Lakes region is expressing their frustration regarding local encryption companies that continue to operate gas-fired power plants. This is despite being denied air permits over three years ago.

The New York Department of Environmental Protection denied Greendige Generations permission to operate their natural gas plants in 2022. Despite this ruling, Greenidge has persisted in its operations, reportedly releasing around 500,000 tonnes of carbon dioxide annually.

The ongoing battle in the Finger Lakes has lasted for several years, with server farms from places like New York and California encountering similar issues. Residents claim that these operations often strain local electrical grids and, in some cases, reinstate retired gas-burning plants. They believe that years of bureaucratic delays, along with the fossil fuel policies from the previous administration, necessitate action from the community.

“We’re incredibly frustrated and disappointed,” said Vinny Aliperty, owner of Billsboro Winery. “This should have been a straightforward situation.”

According to company filings, Greenidge has generated over $200 million in revenue since its air permit was denied. State officials stated that the company failed to present a dependable plan to reduce greenhouse gas emissions, as mandated by state climate leadership and local protection laws.

While Greenidge was allowed to appeal the decision within the Department of Environmental Conservation and district courts, a series of delays have brought the case back to an administrative law judge. Local community members plan to file a motion soon, aiming to expedite the evidence hearing process.

Environmental groups are frustrated as well, noting the postponement of a scheduled hearing last week for the third time, which has added about three months to the timeline. This has led to accusations of long-term manipulation to drive legal challenges.

Greenidge has refuted these claims, with its president stating in an email that any suggestion of trying to delay the process is “behaviorally false.”

The company cites limited hearing availability in Albany as a scheduling challenge. Meanwhile, local environmental groups have suggested alternative venues for the hearings, including the law firm representing Greenidge.

In a letter to the judge, Greenidge’s lawyer mentioned being too occupied with other matters to attend the originally scheduled June hearing, requesting a postponement. They recently sought a delay again following the release of the state’s draft energy plan, which highlighted ongoing reliance on fossil fuels and the need for enhanced infrastructure investment. Greenidge argues it needs more time to assess the state’s plans, which could impact its operations.

Local activists are losing patience with Governor Kathy Hochul. Yvonne Taylor, co-founder of the Seneca Lake Guardian, shared her disappointment, saying, “This should have been resolved months ago. The governor appears to have compromised the interests of the Finger Lakes region for the benefit of the oil, gas, and crypto industries, which is a betrayal to the hard-working community members here.”

Hochul’s office did not respond to requests for comment, and the DEC also declined to provide any information.

The state’s climate law, which was signed by former Governor Andrew Cuomo in 2019, demands a shift to renewable energy by 2040. It also mandates a reduction in greenhouse gas emissions by 40% by 2030 and by 85% by 2050, using 1990 levels as a baseline.

A DEC assessment of the air permit application revealed that Finger Lakes Cryptominers did not exhibit any plans or evidence to cut emissions. Instead, the firm contended that the state lacked the authority to deny air permits in accordance with climate regulations.

In November 2024, the Yates County Supreme Court ruled that the DEC could refuse air permits for operations not aligning with the state’s climate laws. The court deemed Greenidge’s activities inconsistent with these laws and sent the case back for further justification.

The facility continues operating and solving complex algorithms to generate new Bitcoin. Previously, it was a coal plant that shut down in 2011. In 2014, Atlas Holdings LLC invested $100 million to revamp the site into a natural gas facility, which can power around 75,000 homes.

According to the U.S. Energy Information Administration, carbon emissions from the facility ranged from approximately 160,000 metric tons between 2017 and 2019, and saw a surge to over 500,000 tons in subsequent years.

Residents are increasingly concerned about the noise from the power plant near Lake Seneca and the recurring algae blooms they attribute to it. This situation is exacerbated by nitrogen oxides emitted from natural gas facilities. The plant also draws significant amounts of water from the lake to cool operations, releasing heated water back into it, which can contaminate drinking water and harm local wildlife.

Greenidge isn’t alone in facing scrutiny—other operators like Digihost in North Tonawanda also continue operations under expired permits. Similar setups have emerged throughout the U.S. as cryptocurrency and AI technologies demand vast amounts of electricity.

“This facility represents a significant concern,” noted Aliperty. “If New York State can’t manage this situation, it may encourage other power and peaker plants to resume operations.”