The American miner Stronghold Digital Mining has submitted an application for approval of the mining of cryptocurrencies based on the energy released by burning tires to the Pennsylvania Department of Environmental Protection. This is reported by local media.
The company is implementing the initiative at the Panther Creek plant in Neskehoning.
According to the documents, Stronghold plans to produce up to 15% of its energy capacity in this way.
In the application, the mining firm cited approvals from the US Environmental Protection Agency for the use of tires as a power source at other industrial sites in the state.
The company sent a request to the regulator back in July, but this information reached the public only by the end of August. Local environmentalists are preparing a protest.
Activists highlighted the dubious status of facilities already using a similar method of generating industrial power, and insisted on a ban on Stronghold.
“Because the [Panther Creek] uses generated electricity to mine cryptocurrencies rather than selling it to utilities, the facility must re-permit as an incinerator, which will be subject to increased requirements for monitoring air pollution, ”said Russell Zerbov, spokesman for the Clean Air Council.
Earthjustice lawyer Charles McPhedran noted that emissions of sulfur dioxide and nitrogen oxides have skyrocketed since Stronghold acquired the Pennsylvania facility in 2021.
In August 2022, the company announced the steps taken to restructure debts with a reduction in bitcoin mining capacity.
The same month, the firm agreed with Whitehawk to extend the maturity of the loan and a new line of credit by $20 million. The miner later rescheduled payments on the outstanding balance of approximately $54.9 million and entered into a hosting agreement with Foundry.
In October, Stronghold ended its deal with infrastructure provider Northern Data. With this decision, the firm will save between $10 million and $25 million by September 2024.
Recall that in the summer of 2023, Nodal Power raised $13 million for a project to convert methane released from landfills into renewable energy, some of which is used for cryptocurrency mining.
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