The US company Greenidge converted a coal-fired power plant into a Bitcoin mine. Was this supposed to be clean energy?

Greenidge Company in the United States transforms coal-fired power plants into Bitcoin mines In 2014, the Lockwood Hills coal-fired power plant located in Seneca Lake in northern New York was acquired by the gas-fired power plant Greenidge Generation and transformed into a natural gas plant. Today, Greenidge uses it to mine Bitcoin.

According to the BBC, after the factory's equipment was modified, the company installed a turbine on one side of the equipment to generate electricity, which can power tens of thousands of computers engaged in Bitcoin transactions.

However, the company does not just mine Bitcoin. It operates in a hybrid mode, feeding some of its electricity into the grid and using the rest for Bitcoin mining. How the electricity is allocated will be determined by the profit margins of the day. In this regard, the company's chief financial officer Tim Rainey explained in Forbes magazine that because the cost of electricity production fluctuates, this will ultimately affect the decision whether to mine or sell electricity.

This is a very novel approach, and if Greenidge continues to operate in this way, it will achieve a historic victory.

Cryptocurrencies like Bitcoin, which are relatively short-lived and have long been ignored or even rejected by countries and companies, seem to be coming of age as some countries say they will make Bitcoin legal tender. However, such a shift has also been met with opposition. Environmentalists point out that mining cryptocurrencies is energy-intensive and in some cases uses as much electricity as an entire country. This is in addition to the large amount of carbon emissions caused by the use of fossil fuels such as coal and natural gas to generate electricity worldwide.

Greenridge claims that it has reduced carbon emissions by 75% compared to coal-fired power plants. This may be an improvement. However, although the plant now uses natural gas instead of coal, it still releases a lot of carbon dioxide. Therefore, local residents and some environmentalists and organizations have expressed their continued concern about the plant's pollution emissions and other related operational issues.

According to the company's website, the company currently only operates in northern New York, but has plans to build a new plant in South Carolina and claims to use zero-carbon resources for mining. However, local residents remain skeptical.

In fact, a group of people in the area have organized to oppose the continued operation and expansion of the plant and held marches. In a letter to Governor Andrew Cuomo on January 25, more than 100 companies expressed their opposition. Part of the letter reads as follows:

“Although the Lockwood Hills coal plant has been converted to a natural gas plant, it still operates at less than half the efficiency of a modern natural gas plant. The expansion of the plant means it will run 24/7 and will increase its efficiency from 6% in 2019 to 100%. This will consume enough electricity to power more than 90,000 homes... The plant's greenhouse gas emissions will be at an all-time high... So we think Greenidge's decision to increase its hash rate by burning fossil fuels to mine Bitcoin is a reckless decision... In fact, the Public Utilities Commission and the Finger Lakes community have been misled. If this is done, Atlas Holdings LLC can prove that it not only needs to exist, but also provide public convenience, then reduce regulatory efforts, and finally use the plant for private gain.”

In April, environmental law groups Earthjustice and the Sierra Club also wrote to the New York Department of Environmental Protection, expressing opposition to Greenidge's expansion, in part due to climate concerns.

Despite this, the five-member planning committee voted to allow Greenidge to continue operating.

The company then took the initiative to purchase carbon offsets, aiming to achieve carbon neutrality in May this year, and claimed to be the first Bitcoin mining company in the United States to do so. Now, the company says it plans to invest part of its mining profits in renewable energy projects in New York. In addition, the company is working with the U.S. Department of Environmental Protection to permanently close a landfill in the area and build a 5-megawatt solar power plant on the 143-acre land.

“Greenidge’s bitcoin mining business has become a model for the entire industry,” Jeff Kirt, CEO of Greenidge, said in a statement. “We will strive to promote the development of this emerging financial platform for people around the world, protect the earth’s environment, and promote economic development in northern New York.”