A new chapter is being written for Bitcoin mining, one that is more economical, "greener," and potentially more environmentally acceptable. According to Bitcoin MagazineColombian society Horeb Energy, in collaboration with the French multinational Veolia, has launched a pilot in Colombia that uses biogas from a waste site to produce electricity and mine Bitcoin at a record cost of 2,5 cents per kilowatt-hour (kWh).
The project: from household waste to biogas, then to Bitcoin
The project is located in the Norte de Santander region, in northeastern Colombia, where Veolia operates a waste management center, the CIGE Guayabal landfill site.
- Biogas valorization : buried waste produces biogas (a methane-rich mixture) when it decomposes. Veolia captures this biogasIt processes and converts it into electricity. This type of process is already used in several countries to reduce greenhouse gas emissions related to waste.
- Off-grid mining : this green electricity powers a computing center independent of the national grid, an "off-grid" Bitcoin mining container, managed by Horeb Energy.
- Performance and cost : the rate of 2,5¢/kWh is almost half the price of the average observed for Bitcoin mining in North America (between 3,5¢ and 6¢/kWh).
According to officials, the project utilizes methane, a gas that would otherwise be released into the atmosphere, where it contributes significantly to global warming. Furthermore, the electricity produced is 100% renewable, adding a strong environmental dimension to the operation.
Why this is significant for mining… and for the environment
The initiative illustrates an alternative to the criticisms often leveled at Bitcoin mining: its massive energy consumption and carbon footprint. Indeed, traditional mining often relies on fossil fuels, which fuels environmental concerns.
However, as this Colombian project and other similar initiatives, such as those used by oil companies, demonstrate, it is possible to combine crypto-asset mining and energy transition:
- Mining is aligned with principles ESG (environment, social, governance): use of green energy, reduction of methane emissions from landfills, and recovery of polluting waste.
- The model can provide an energy source for isolated or off-grid sites, which are often poorly served or otherwise unprofitable. Mining then becomes a flexible "buyer" of renewable energy, which can financially support green infrastructure.
- From an economic standpoint, an electricity cost of 2,5¢/kWh makes mining more competitive and potentially profitable, even in regions where energy is expensive or access is difficult.
A growing trend, but persistent challenges
The Horeb Energy / Veolia initiative is not an isolated case: the concept of using "unconventional" sources (landfill biogas, solar surplus, hydro, etc.) to power mining is gaining ground, as the industry is increasingly scrutinized for its ecological footprint.
Nevertheless, several obstacles and questions remain even in this "green" context:
- La actual durability of the model Transforming waste into mining can reduce emissions, but it is necessary to ensure that the captured biogas is "clean" (no leaks), that waste management is compliant, and that the electricity produced remains dedicated to sustainable uses.
- La large-scale reproducibility The model depends on the availability of landfills with sufficient biogas production. Not all regions have this.
- societal and ethical impacts : some critics believe that even "green" mining diverts energy resources that could be useful for the real economy (industry, food, heating) towards the production of cryptocurrencies.
Criticism of Veolia
Although the partnership between Horeb Energy and Veolia is a promising model for the mining industry – by converting methane into electricity and reducing Bitcoin's carbon footprint – it should not be ignored that Veolia has a heavy environmental baggage in Colombia.
According to a survey published by Courrier InternationalThe company is accused of contributing to the contamination of a protected wetland by dumping toxic liquids from a landfill at another site in the country. The Colombian justice system has taken up the case, while Veolia firmly rejects these accusations and denies any deliberate pollution.
However, it is important to distinguish these accusations related to the mismanagement of a particular site from the Bitcoin mining project using biogas as such.
The process used here involves capturing methane from waste decomposition, converting it into energy, and then injecting it into an off-grid computing center. Technically, this model does not require leachate to be released into the environment, nor does it involve direct interaction with rivers or wetlands.
In other words: the controversies surrounding Veolia must be mentioned, but they should not be automatically confused with the biogas mining project which, on paper, can be carried out in a clean, circular and non-polluting way.
In conclusion
The recent announcement of the partnership between Horeb Energy and Veolia in Colombia potentially marks a turning point for Bitcoin mining from a simple energy-intensive activity often criticized, towards a hybrid model combining technology, sustainability and circular economy.
By transforming polluting waste into renewable energy to power mining, this project proves that it is possible to reconcile cryptocurrencies and environmental awareness. If this model becomes widespread, it could redefine the perception of mining, no longer as an environmental burden, but as an opportunity to valorize wasted resources.
