Digihost crypto mining facility to take over Fortistar power plant

NORTH TONAWANDA, NY – Neighbors in the city of North Tonawanda who live near a facility used for cryptocurrency mining are feeling let down again after the New York State Public Service Commission approved the transfer of a power plant to the company that operates the facility.

On Thursday, the PSC cleared the way for Digihost, a Canadian cryptocurrency company, to take over the former Fortistar facility on Erie Avenue.

Digihost was the subject of noise complaints and environmental concerns when the facility began operations and testing back in February 2022. While the commission acknowledged those concerns in its ruling, it stated that its oversight was only over potential impacts on consumers’ electricity costs, which it found. no.

For neighbors near the facility, however, the verdict meant something else.

“I feel like we’re not being listened to and taken seriously,” said Karen Hance.

Hance lives on Sherwood Avenue, directly across from the Digihost facility. She is part of a group of neighbors who have opposed the project since it was proposed, citing concerns about the unknown impact of crypto mining on the environment and, since February, the noise it created.

“They’ve reduced the noise somewhat,” Hance said.

“I still hear it in the position that my house is so close to the plant.” She estimates her home is about 800 feet away.

The project when first proposed was the source of some secrecy and neighborhood backlash, the latter of which resulted in Digihost agreeing to construct acoustic walls to cut down on the noise. Although these panels were only partially finished on Thursday evening.

Deborah Gondek also fought the project early on amid concerns about energy and water use concerns for other proposed crypto facilities around the state. Her efforts are continuing, including legal action, but this week’s decision was a disappointment, she said.

“Most municipalities like North Tonawanda don’t have zoning codes or noise ordinances that address bitcoin mining, so we really counted on the Public Service Commission,” Gondek said.

Chris Murawski, executive director of the Clean Air Coalition of Western New York added, “Once again, the citizens of Western New York are suffering from this decision by an unelected appointed body.”

Murawski and his group have worked with neighbors like Gondek and Hance, advocating for environmental and other oversight of cryptomining, both at the local and state level.

The New York State Legislature passed a crypto moratorium during its last session, but it remains unsigned by Governor Hochul. When 2 On Your Side asked the governor’s office whether the legislation would be vetoed or passed, we were sent comments from Governor Hochul three weeks prior at the New York State Fair.

“It’s one of the 1,007 bills that’s been sitting on my desk. We’ve had a lot to do, so I want to review all the positions for and against and have a chance to evaluate it in the next couple of weeks, couple of months , Governor Hochul said.

As both Gondek and Murawski noted, while the power plant has been transferred to Digihost, the company still needs a Title V air permit approved by the NYS Department of Environmental Conservation to operate.