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- The latest study by Cornell University has proposed that Bitcoin mining promotes renewable energy development.
- The study also shows that some projects across the US could benefit from Bitcoin mining during the pre-commercial development phase.
The campaign against Bitcoin mining as an environmentally unfriendly process reached its height in 2021 when researchers deemed the process energy-consuming and resulting in carbon emissions. As of 2022, it was estimated that Bitcoin mining contributed to 0.2 percent of global greenhouse gas emissions.
A United Nations report has also stated that Bitcoin mining creates environmental impacts on climate, water, and land. For its study, the activities of 76 Bitcoin mining nations during the 2020–2021 period were considered. However, a section of the crypto community believes that these negative results are exaggerated.
In response to this, Cornell University researchers have led a new study entitled “From Mining to Mitigation: How Bitcoin Can Support Renewable Energy Development and Climate Action.”
The objective was to investigate planned renewable energy projects in the US. The study further calculated how each project could benefit from BTC mining during the pre-commercial development phase. In this phase, wind or solar is used to generate electricity.
More on the Findings on Bitcoin Mining
According to the findings, developers could make millions of dollars and invest in future renewable energy projects. The report discloses that Texas has the most potential among the states in the US with 32 planned renewable projects. With this, $47 million in profits could be made in BTC mining during the pre-commercial operations. The Aktina Solar and Roseland Solar Projects in Texas are the most profitable projects with 250 megawatt capacities and could generate a profit of $3.23 million. The Western Trail Wind project has a capacity of 367 megawatts. It had a profitability of $2.65 million.
Projects that could generate the second highest amount of profits are located in California. Interestingly, some states such as Colorado, Illinois, Iowa, Nevada, and Virginia show profitability despite fewer installations.
Policy recommendations were suggested for the economic feasibility of renewable energy projects while reducing carbon emissions.
A doctoral student who co-authored the research, Apoorv Lal, stated.
These rewards can act as an incentive for miners to adopt clean energy sources, which can lead to combined positive effects on climate change mitigation, improved renewable power capacity, and additional profits during the pre-commercial operation of wind or solar farms. We also recommend policies that encourage cryptocurrency mining operations to return some of their profits to infrastructure development. This would help create a self-sustaining cycle for renewable energy expansion.
It is also important to note that the authors acknowledged that crypto mining has environmental costs including metal depletion as well as hardware becoming obsolete. Regardless, these can be mitigated and foster investment in renewable energy. Another co-author identified as Fengqi You, a senior faculty fellow at the Cornell Atkinson Center for Sustainability also stated that there should be a steady energy availability to make a profit.
Profitability of a mining system hinges on periods of steady energy availability since renewable energy sources can vary Significantly. Therefore, it is important to site the mining farm strategically to maximize productivity.