Environmental group sues New York for approving crypto mining facility

In September, the New York Public Service Commission (PSC), which oversees and regulates public utilities, greenlit the takeover of the Fortistar power plant in North Tonawanda, a town close to Niagara Falls, by Canadian crypto mining company, Digihost.

In response to environmental concerns that were brought to the PSC by Clear Air and the Sierra Club during the approval process, Digihost said it would convert the facility to renewable natural gas, with the ultimate goal of using all hydrogen by the end of 2023, according to public filings. The company also told the commission that its mining facility was approved by the North Tonawanda planning commission, which conducted its own environmental review.

Mining crypto, like Bitcoin, is very energy intensive. If Bitcoin mining were its own country, it would rank 36th in annual electricity consumption, according to the Cambridge Bitcoin Electricity Consumption Index, which tracks electricity consumption used to mine Bitcoin.

Advocates for crypto mining say miners help bring jobs and economic activity to rural areas, though critics say the amount of job creation is negligible. Mining advocates also argue that crypto mining has been unfairly singled out in the state for its electricity usage and miners are likely to head to states that are more friendly to the industry.