Here are the different ecological innovations used by bitcoin miners

This is certainly the most important criticism made of Bitcoin, namely its energy consumption. This is high due to the mining process, called “Proof of Work”, which is carried out by specific computers which consume electricity. Thus, what is criticized about the Bitcoin network is not so much the fact of “polluteder” than being greedy for energy.

There are several studies devoted to the energy consumption of Bitcoin, the best known of which is certainly that of Cambridge Bitcoin Electricity Consumption Index (CBECI). The index shows that Bitcoin would consume as much as a country likeArgentina or Pakistan, with 139,2 TWh consumed per year. It is on this study that the latest campaign launched by GreenPeace USA, which condemns the consumption of bitcoin and urges the community to “change the code”.

However, the study is very often controversial by experts in the bitcoin mining industry who criticize the study for not taking into account the renewable energy sources used nor taking into account the ecological innovations carried out in the mining sector. mining. According to data from Bitcoin Mining Council, the use of renewable energies is up to 60%, in 2022 and this trend towards “Green Mining” is on the rise. Even more, some mining companies help reduce the carbon footprint of certain industries.

Today, more and more bitcoin miners are increasingly aware of the environmental issues surrounding bitcoin and are implementing these ecological solutions. This is also why many environmental experts agree that the Bitcoin is a counterintuitive solution that is part of a solution and not a problem to combat global warming.

We have listed here some of these innovations implemented by bitcoin miners, in a trend that continues to be confirmed.

Reducing gas surpluses from oil companies

When oil and gas companies develop new wells, there are not always pipelines that are connected within the infrastructure. So, natural gas released into the air is burned by oil companies. This is called the process of “flaring" which consists in burning natural gas releases associated with oil extraction.

Although it does not require additional energy to burn the gas, flaring is still fundamentally a waste of a potentially useful energy source. Likewise, this gas released into the air contributes to greenhouse gas emissions. Thus, companies like “Crusoe Energy Systems“, provide the necessary assistance to oil and gas companies by installing mining farms that will use the energy of natural gas converted into electricity to mine bitcoin.

The company has already established in the Middle East, notably in Oman, to launch pilot operations, for future development in this region, which brings together the main oil companies in the world.

This enables the decarbonization of the oil and gas sector, and according to a World Bank report, “the end of flaring on oil production sites meets a dual challenge: reducing greenhouse gas emissions and using the recovered gases for productive purposes — for example to produce electricity for the benefit of poor populations who rely on more polluting fuels to meet their energy needs.”

Mining Bitcoin to heat a city

Mining farms are made up of multiple computers that consume electricity and produce heat. This also explains why many mining farms are located in countries with cold climates, such as Iceland, for example. The country has long been a welcoming land for bitcoin miners because the energy comes mainly from renewable energies (wind, hydraulic and geothermal). This makes it possible to reduce the carbon footprint of bitcoin mining but also to be able to use the heat created optimally.

Companies like Mint Green, installed in Canada, capture the heat generated by farms to produce hot water which will then be transported to the national network and the public service. This water is intended for businesses or individuals depending on the needs felt. Thus, more than 96% of the electricity consumed by bitcoin mining is recovered and distributed to the public service. Today, nearly 100 buildings benefit from this system in the city of Vancouver.

Bitcoin mining to serve the forestry industry

CryptoVault is a Norwegian data center and bitcoin mining company where the facilities are powered by green Norwegian energy sources from water and wind turbines. The company also optimizes the heat produced by its farms and recently implemented a solution to reduce the carbon impact of the forestry industry, a large sector in Norway.

This generally uses the sun drying method which lasts between 1 and 3 months depending on the season and the type of wood to be dried. By installing a mining farm, the heat produced by the ASICs is then used to dry the wooden logs more quickly. Thus, the heat produced by bitcoin mining makes it possible to optimize the costs of the forestry industry while helping to secure the network.

Solutions are currently being developed, concerning the drying of other products such as algae, for example.

Recovering organic waste and methanization from cattle breeders

Cattle breeders use the methanization process to treat organic waste produced by animals such as excrement in order to produce energy. The organic matter will be transformed into biogas (mainly methane) which can subsequently be used to produce electricity used to mine bitcoin.

Thus, anaerobic digestion allows cattle breeders to recycle their waste by producing energy and generating additional income through bitcoin mining. In addition, anaerobic digestion can contribute to the reduction of greenhouse gas emissions, because it makes it possible to capture and recover the methane produced by organic waste, which would otherwise be released into the atmosphere.

There is a documentary “The Bitcoin Farmer” which films the Irish farmer, Tom Campbell, which has since become a reference in the use of bitcoin mining on livestock farms.

Reduce wasted energy and optimize mini-grids

Mini-grids or mini-networks in French are autonomous electricity production systems that provide electricity to a small community. Typically, mini-grids are often installed in rural or remote areas that are not connected to the national electronic grid. Very often also, mini-grids are made up of energy from a renewable energy source such as solar or hydraulic energy.

However, the electric bills of mini-grids may be considered too high for the surrounding community, and the electricity produced is then unused.

Our Company Gridless, exploits hydraulic electricity from certain remote regions of Kenya, which then makes it possible to finance the electricity network, making the cost of electricity cheaper for residents. This is a case positive externality of bitcoin mining which makes it possible to exploit and finance excess electricity produced, which would otherwise be wasted.

Thus, residents living nearby have access to cheaper electricity which then contributes to the local economic development of the village.

Bitcoin mining to heat greenhouses

Our Company Bitcoin Bloem is a bitcoin mining company based in the Netherlands and exploits the heat produced to heat flower greenhouses. Bloem formed a partnership with a local farmer who had electricity-consuming greenhouses.

The partnership is thus win-win in that the Bitcoin Bloem company pays the farmer's electricity bill used for mining and the heat produced is then used by the farmer to grow his flowers.

Use solar and wind energy

The company Blockstream – which finances many projects in the Bitcoin ecosystem – has teamed up with the company Square to create a mining farm running on solar energy. This is part of the “Bitcoin Clean Energy” incentive, supported in particular by the Bitcoin Mining Council (BMC).

Other bitcoin mining companies are active in wind and solar energy, such as Texas-based HoldRanch, which seeks to harness renewable energy for bitcoin mining. This will help accelerate the energy transition in the USA.

Conclusion

All these ecological innovations are still in the minority compared to the bitcoin mining industry in the world. However, these help to increasingly reduce the environmental footprint of the Bitcoin network while promoting a more inclusive financial system for the world population.

We can hope that in a few years the results will be even greater and we can also think that one day, bitcoin mining will be 100% produced by renewable energies and will be carbon neutral.

As many environmental activists assert, with in mind Daniel Batten, bitcoin mining must be considered “a solution and not as a problem concerning the ecological transition” which concerns us all.