An agreement has been reached between the Pennsylvania Department of Environmental Protection (DEP) and a cryptocurrency mining firm to expedite the remediation of the company’s unauthorized coal ash disposal site in northwestern Pennsylvania. This agreement was officially finalized in early March.
Initially, the DEP had instructed Stronghold Digital Mining to complete the cleanup operation by the end of 2027. However, environmental advocacy groups filed a lawsuit against the agency, contending that this deadline was excessively lenient. On March 6th, the DEP and the company concurred on a revised deadline of September 1, 2026, for the completion of the cleanup.
The company operates the Scrubgrass Power Plant, situated in Kennerdell, Venango County. This facility generates electricity by combusting waste coal, a low-quality fuel byproduct from former mining activities. The generated power is then utilized for cryptocurrency mining, a process where energy-intensive computers are used to create digital currencies like Bitcoin.
As of this writing, the company has not responded to inquiries seeking comment. The ash resulting from the power plant’s operations is being stored on a 5-acre temporary storage area.
Charles McPhedran, a lawyer representing Earthjustice, which advocated for the Scrubgrass Creek Watershed Association and PennFuture (the plaintiffs), explained, “The original plan was for the coal ash to remain there temporarily to cool down before being transported to a designated, permanent disposal site.”
However, the accumulation of ash quickly exceeded the capacity of the storage pad.
He further stated, “It spilled over the fencing. It also flowed into a drainage ditch carrying water running away from the site. It simply became completely unmanageable.”
According to official filings submitted to the Pennsylvania Environmental Hearing Board, the company reported to the DEP that it was unable to locate suitable permanent disposal locations.
Bill Pritchard, representing the watershed association, expressed his astonishment at the sheer size of the coal ash pile when he first observed it in 2023. Scrubgrass estimates the amount of ash to be around 325,000 tons.
“It’s a veritable mountain. To me, it seemed like a blatant disregard for environmental responsibility,” Pritchard stated.
Pritchard, a resident of Slippery Rock, approximately 20 miles to the south, enjoys kayaking, hiking, and biking in the recreational areas near the Allegheny River. He voiced his concern about the coal ash, which is known to contain hazardous metals such as mercury, cadmium, and arsenic, being left exposed on the ground.
The area lacked a proper containment system, and according to expert testimony presented by the plaintiff environmental groups, it is “highly likely” that the site is releasing heavy metals into the nearby groundwater and runoff.
“If a major storm were to occur, would the constituents of that coal ash contaminate the Allegheny River? And what potential pollutants might leach from this pile into the groundwater?” Pritchard questioned.
As part of the new agreement, the mining company is mandated to reconstruct stormwater control channels surrounding the storage area and conduct ongoing groundwater and surface water assessments.
The DEP has not yet provided an official response to requests for comments.
For further information, see the report by our partner, The Allegheny Front.