Bitcoin mining can harness previously unused energy sources, such as stranded methane and geothermal energy, to reduce its greenhouse gas emissions and advance climate goals, according to a market commentary titled 'The Role of Bitcoin Mining in Climate Goals' by HAYVN Global.
Bitcoin mining, often criticized for its high energy consumption, can dramatically reduce its climate impact by harnessing previously unused energy sources and reducing greenhouse gas emissions, according to the commentary from HAYVN Global.
Bitcoin Mining – Substantial Energy Use
Bitcoin mining, the process of verifying transactions and creating new blocks on the Bitcoin blockchain , requires a significant amount of energy. This has led to concerns about the environmental impact of Bitcoin mining, particularly its contribution to climate change. This is especially relevant given debates around the financial viability of mining.
However, there is a growing movement to use Bitcoin mining to harness previously unused energy sources, such as stranded methane and geothermal energy. This could help to reduce the environmental impact of Bitcoin mining and even make it a net positive for the climate, according to the HAYVN Global report.
Harnessing Stranded Methane
Stranded methane is methane gas that is released into the atmosphere or flared because it is too costly to capture or transport. Methane is a potent greenhouse gas, with a global warming potential 84 times greater than carbon dioxide over a 20-year period.
Bitcoin miners can capture stranded methane gas and use it to power their mining operations. This reduces methane emissions and provides a new source of revenue for energy producers.
Several companies are already working to harness stranded methane for Bitcoin mining. For example, Link Global Technologies in Alberta, Canada, is using stranded methane from inactive natural gas wells to power Bitcoin mining and data centers.
Geothermal Energy
Geothermal energy is heat generated and stored in the Earth. It is a renewable and clean energy source that can be used to generate electricity.
El Salvador is one country that is using geothermal energy to power Bitcoin mining. In October 2022, El Salvador launched the Lava Pool, the world's first geothermal-powered Bitcoin mining pool. The Lava Pool is a collaboration between Volcano Energy and Luxor Technology Corporation. It uses geothermal energy from the Conchagua volcano to power Bitcoin mining operations.
Other Initiatives
In addition to stranded methane and geothermal energy, Bitcoin miners are also using other renewable energy sources, such as hydropower and solar energy. For example, HydroMiner in Austria uses hydropower to power its Bitcoin mining operations. HydroMiner reports that its electricity costs are 85% lower than the European average.
While natural gas is often an expensive source of energy, due to the pipelines required to move the gas, bitcoin centers could be positioned in remote areas to reduce costs and leverage potentially wasted gas. In addition, natural gas that is extracted alongside oil is often flared or vented. Companies like Upstream Data in Canada and Crusoe Energy Systems in the US have developed solutions to mine Bitcoin using this otherwise wasted natural gas, reducing emissions associated with flaring and venting.
According to HAYVN Global’s report, miners can dramatically reduce their climate change impact by harnessing previously unused energy sources and reducing greenhouse gas emissions. While there are still challenges to overcome, such as the need for more renewable energy infrastructure, the progress that has been made in recent years is encouraging.
