- Bitcoin mining’s use of renewable energy sources reached over 50% in 2023, making it a top sustainable energy user globally.
- Off-grid mining operations utilizing vented methane for electricity have grown, reducing emissions versus flaring. Bitcoin mining now offsets 73% of its emissions without carbon credits.
- As energy grids use more renewables, on-grid mining’s emission intensity fell 29% in 2023 versus 2021. This transition has further increased Bitcoin’s sustainable power.
The use of sustainable energy sources for Bitcoin mining hit a record high in 2023, marking notable progress for the industry’s environmental impact. An analysis by The Bitcoin ESG Forecast found Bitcoin now relies on renewable energy for over half of its power needs. This positions the cryptocurrency as the top sustainable energy user among global sectors.
Vented Methane Powers Off-Grid Mining
One key development is the rise of off-grid Bitcoin mining operations fueled by vented methane. Oil producers in North America often pay for permits to flare excess natural gas, releasing methane in the process. However, some mining companies have begun using this vented methane to generate electricity instead. This approach reduces emissions compared to releasing the methane into the atmosphere. Bitcoin mining now offsets 73% of its emissions without relying on carbon credits, surpassing other industries.
Trend Toward Greener Grids
Following mining bans in China and Kazakhstan, many operations have shifted to more renewable energy grids in North America and other locations. As global energy grids gradually become greener, on-grid mining emission intensity fell 29% compared to 2021 levels. This transition has further increased Bitcoin’s sustainable power mix.
Miners Brace for Upcoming Halving
With Bitcoin’s next halving event approaching in 2024, leading miners are preparing for the associated drop in block rewards. Analysts project production costs will nearly double while mining revenue is cut in half. Companies like Riot, TeraWulf and CleanSpark are best positioned to weather this storm, according to experts. While challenging, the halving is intended to control Bitcoin’s supply and serves an important role in maintaining the network.
