Pennsylvania Contemplates Climate Impact of Cryptocurrency Mining Linked to Waste Coal Usage

Pennsylvania lawmakers are examining the environmental impact of cryptocurrency mining, as crypto-mining companies exploit incentives tied to the burning of waste coal. 

In the state of Pennsylvania, spent coal, a by-product of coal mining, is being used by some cryptocurrency miners, according to the publication Stateimpact. This substance, previously deemed unfit for power or steel production, is now recognized by the state as beneficial when used in power plants. As per Pennsylvania’s Standards, electric utilities are required to source 10% of their power from sources including waste coal.

However, environmental advocates argue that this strategy merely displaces pollution from the ground into the air. Earthjustice attorney Charlie McPhedran highlighted a case where a crypto-mining company’s acquisition of the Panther Creek plant resulted in nitrogen oxide and sulfur dioxide emissions tripling from 2021 to 2022.

Meanwhile, Greg Beard, CEO of Stronghold Digital Mining, defended the waste coal burning plants, stating that they were created with a focus on remediation over power production. He insisted that these plants offer a reliable backup for the electric grid during high-demand periods.

Environmentalists are advocating for the elimination of coal burning incentives and the enforcement of less energy-intensive practices for crypto-mining companies. In a recent hearing, the House Environmental Resources and Energy Committee, environmental lobbyists, and cryptocurrency businesses discussed the state of the cryptocurrency mining industry in Pennsylvania.

In a related development, New York has instituted a two-year moratorium on crypto-mining as it explores associated issues. Currently, no similar legislation exists in Pennsylvania.