Pennsylvania-based cryptocurrency mining firm Stronghold Digital Mining has applied for approval to use shredded tires as an energy source, with plans to generate up to 15 percent of its energy at its Panther Creek facility in Nesquehoning. While the company filed the application in July, It only became public knowledge at the end of August. Stronghold's request to use tire-derived fuel (TDF) cites the approval of such fuel by the US Environmental Protection Agency (EPA) at other industrial facilities in the state.
Tire-derived fuel has been legally used in the United States since 1991, often in combination with other fuels at various Pennsylvania plants. However, local environmental activists have raised concerns about the existing facilities using TDF and have voice ed opposition to cryptocurrency mining facilities being licensed for such practices. Clean Air Council advocate Russell Zerbo pointed out that Panther Creek uses the electricity it generates for cryptocurrency mining instead of selling it to the grid. As a result, he argued that the plant should be reclassified as a solid waste incinerator and subject to increase air pollution monitoring.
Environmental attorney Charles McPhedran, representing Earthjustice, stated that sulfur dioxide and nitrogen oxide emissions had risen significantly after Stronghold took over the Panther Creek plant in 2021. Stronghold has not shielded away from using coal to mine cryptocurrency, utilizing the abundant supply of waste coal available in Pennsylvania. Approximately 2 billion cubic yards of waste coal continue to pollute the state's environment.
Stronghold clarified its waste coal consumption process, noting that waste coal is classified as a Tier II renewable energy source by the state of Pennsylvania, similar to large hydroelectric plants. The company brings waste coal from designated sites to its facilities, where it employs fluidized bed boilers (CFBs) to convert the waste coal into energy. This process eliminates toxins, producing electricity and beneficial ash as by-products. Stronghold also mentioned that during the second quarter of 2023, it mined 626 Bitcoins, representing a 4 3% increase compared to the fourth quarter of 2022. However, it reported a net loss of $11.7 million on revenue of $18.2 million for the same period.
