Renewable energy adoption for Bitcoin mining spikes to unprecedented 54%
A new study has revealed a remarkable increase in the use of sustainable energy for Bitcoin mining. The report, published on January 18th by Daniel Batten, an analyst specializing in Bitcoin’s environmental, governance, and corporate governance (ESG), relied on data from the BEEST model and a thorough analysis of publicly available information. It highlights that sustainable energy usage in Bitcoin mining has reached an unprecedented 54.5%, representing a 3.6% rise from the previous year.
The blog article from Bitcoin ESG Forecast emphasizes the significant progress made over the past four years, comparing Bitcoin’s sustainable energy mix with other industries. These insights are particularly important considering the environmental impact of Bitcoin mining.
The research sheds light on the practices adopted by off-grid Bitcoin miners, particularly in their use of methane emissions. The report also explains how small oil producers in North America, specifically Canada and the United States, have traditionally paid for permits to release natural gas into the atmosphere, sometimes even venting methane directly.
However, there has been a noticeable shift in practices as some mining companies have begun utilizing this vented methane to generate electricity for Bitcoin mining. This approach reduces the environmental harm caused by methane venting and improves the sustainability of Bitcoin mining operations.
The report highlights that this strategy has enabled the Bitcoin network to mitigate 7.3% of its emissions without relying on offsets. This milestone represents the highest level of emission reduction achieved by any industry without offsetting to date.
The article further emphasizes the expansion of off-grid renewable mining activities, such as Tether’s venture into hydro mining in Latin America and the discovery of more sites that mitigate methane emissions. These developments underscore the growing dependence of the Bitcoin network on sustainable energy sources.
The geographical shift in mining activities has also contributed to this push for sustainability. With the ban on mining in China and strict regulations in Kazakhstan, miners have predominantly relocated to regions with greener power grids in North America or sustainable off-grid locations.
This migration, coupled with the global trend of power grids becoming greener at a rate of 0.7% per year, has resulted in a 29% improvement in emission intensity for on-grid Bitcoin miners compared to 2021.
