Bitcoin mining to exploit on-site natural gas emissions: Ark Invest
Data from a recent Ark Invest report highlights another tool for Bitcoin (BTC) mining in sustainability and energy.
According to the findings, there is enormous potential to transform methane emissions into energy for Bitcoin mining, which in turn will turbocharge solar and wind-generated electricity at on-site wells.
Important research from @skorusARK on #Bitcoinits potential role in transforming methane emissions into bitcoin mining that will turbocharge electricity generated by solar and wind. @skorusARK https://t.co/6cgxGHNcJZ
— Cathie Wood (@CathieDWood) 26 July 2022
Annual gas flaring emissions correspond to 140 billion cubic meters, together with a further 125 billion cubic meters in annual methane emissions. Therefore, untouched, this means that 265 billion cubic meters of natural gas emissions are wasted every year. However, an analysis of the methane needed for the current Bitcoin hash rate is only 25 billion.
Although it is impossible to exploit all emissions due to the oil industry’s existing investments in flaring, methane capture is a viable and early solution. Ark Invest’s Sam Korus tweeted that over half of all vented methane occurs on site at wells. This makes the site an excellent place for mining to capture such emissions and productively use them.
Additionally, instead of the methane being vented, it will be able to generate electricity at prices far below what the mining companies are currently paying.
Recently, the mining industry has shown signs of increased energy efficiency and a pivot towards sustainability.
Last week, the Bitcoin Mining Council released its Q2 review of the network. It revealed that the industry’s use of sustainable energy is up 6% from the same quarter in previous years. In the conclusion of their findings, the council referred to Bitcoin mining as “one of the most sustainable industries globally.”
However, this has been an active change effort on the part of the mining industry. In the past, environmentalists have shamed the industry for its irresponsible carbon footprint.
Korus suggests that while there are other ways to exploit methane, Bitcoin mining is an ideal option as “It’s highly scalable with modular hardware that can be transported to and moved between operational well sites.”
While the new data supports these claims, it is not new. There are already companies that are actively doing it. Back in February, Cointelegraph spoke with Kristian Csepcsa, head of marketing at Slush Pool, about how miners are helping oil companies with flaring reduction by running their generators on natural gas, which would otherwise be burned off.
Nevertheless, there are still skeptics. A Twitter user pointed out that the emissions in question are not naturally occurring. Rather, they are extracted via the extraction of fossil fuels, which due to climate change are under pressure to be cut completely.
@skorusARK You seem to miss the big picture. We’re not talking about naturally occurring gas emissions, but emissions caused by extracting fossil fuels from the ground, right? This extraction must stop completely within the next few years @fossiltreaty. That is the real solution
— siegfried.arweave.dev (@ZwigoZwitscher) 26 July 2022
As the industry continues to adapt to global sustainability standards, time will tell if such solutions will bring the future of Bitcoin mining and energy production.
