Green Energy in Bitcoin Mining Hits New Peak at 54.5%

Recent data from the Bitcoin ESG Forecast indicates that Bitcoin mining now utilizes 54.5% renewable energy, marking big step forward to sustainability in this field. The research, led by Daniel Batten, a co-founder of CH4 Capital, showcases Bitcoin mining as the leading global industry in sustainable energy usage.

What You Need to Know

• 54.5% Renewable Energy Usage: Bitcoin mining now predominantly uses renewable energy sources, reaching an all-time high of 54.5% in its energy mix. This shift highlights a significant move towards sustainability within the industry.
• Comparative Advantage: The Bitcoin ESG Forecast shows that Bitcoin mining is the leading industry in sustainable energy usage when compared to other global industries. The year 2023 saw a 3.6% increase in its use of sustainable energy.
• Methane Emissions Mitigation: Innovative practices in the industry, like using vented methane from small oil producers in North America for electricity generation, have led to a 7.3% reduction in the Bitcoin network’s emissions. This approach is unique and sets a new standard for environmental impact mitigation in the industry.

This increase in the use of renewable energy, like solar, wind, and hydroelectric power, highlights the industry’s efforts to lower its carbon footprint. With the growing public concern over the environmental impact of digital currencies, this transition is a strategic move. It not only addresses climate change but also makes Bitcoin mining more appealing to eco-conscious investors and users.

The research compares Bitcoin‘s sustainable energy mix to other industries over the past four years, using data from the Bitcoin Energy and Emissions Sustainability Tracker (BEEST model). This comparison reveals that Bitcoin mining’s sustainable energy usage surpasses that of other industries, with a 3.6% increase in 2023 alone.

Interestingly, the report notes a trend among off-grid Bitcoin miners using methane emissions for mining. In North America, some small oil producers pay for permits to flare natural gas, occasionally venting methane directly into the atmosphere. However, certain mining operations are converting this vented methane into electricity for Bitcoin mining. This practice not only reduces the environmental harm but also mitigates 7.3% of the Bitcoin network’s emissions without relying on offsets. This achievement is unprecedented in any industry.

Furthermore, the expansion of off-grid renewable mining activities, such as Tether’s move into hydro mining in Latin America and more discoveries in methane-mitigating mining, contribute to the Bitcoin network’s growing sustainable energy use.