10 months ago
57 ARTICLE AD
A recent report indicates a significant surge in sustainable energy use for Bitcoin mining.
The report, released on Jan. 18 by Bitcoin (BTC) environmental, governance, and corporate governance (ESG) analyst Daniel Batten, is based on data from the BEEST model and an in-depth analysis of publicly available information, highlights that Bitcoin mining’s sustainable energy usage has soared to an unprecedented 54.5%, marking a 3.6% increase over the calendar year 2023.
The Bitcoin ESG Forecast’s blog article emphasizes the substantial progress made over the past four years, comparing Bitcoin’s sustainable energy mix with other sectors. The insights presented in the report are particularly significant given the context of Bitcoin mining’s environmental impact.
The research draws attention to the practices adopted by off-grid Bitcoin miners, notably in utilizing methane emissions. The report also details how small oil producers in North America, specifically Canada and the U.S., have traditionally paid for permits to flare natural gas, with some even venting methane directly into the atmosphere.
However, a shift in practices is evident as some mining companies have started using this vented methane to generate electricity for Bitcoin mining. This approach reduces the environmental harm caused by methane venting and enhances the sustainability of Bitcoin mining operations.
The report notes that this strategy led the Bitcoin network to mitigate 7.3% of all its emissions without relying on offsets. This milestone represents the highest level of non-offset-based emission mitigation achieved by any industry to date.
The article further highlights the expansion of off-grid renewable mining activities, such as Tether’s foray into hydro mining in Latin America and the discovery of more methane-mitigating mining sites. These developments underscore the increasing reliance of the Bitcoin network on sustainable energy sources.
The geographical shift in mining activities has also contributed to this sustainability drive. Following the ban on mining in China and the strict regulations in Kazakhstan, miners have largely relocated to regions with greener grids in North America or sustainable off-grid locations.
This migration, coupled with the global trend of grids becoming greener at a rate of 0.7% per year, has led to a 29% improvement in emission intensity for on-grid Bitcoin miners compared to 2021.
