A new study proposes Bitcoin mining can be one of the most’ unlikely solutions to climate change due to its potential for landfill methane reduction. The peer-reviewed paper was published on Aug. 29 in the Journal of Cleaner Production.
Researchers suggest that Bitcoin mining could be one of the ways to cut down on methane emissions from landfills, which is a very potent greenhouse gas that has a much higher warming effect than carbon dioxide. Methane concentrations have been soaring since the early 2000s and are likely to reach the highest levels by 2050, thus, it is very important to discover and implement mitigation strategies.
Bitcoin mining, with its Proof-of-Work process, is a big energy consumer. It now uses close to 151 terawatt-hours (TWh). That’s almost 0.59% of the world’s total electricity. Despite concerns, the paper suggests that combining Bitcoin mining with landfill methane capture could offer both financial returns and reduced emissions.
The study uses, a Monte Carlo simulation on the Lumina System’s Analytica platform to assess the performance of landfill gas-to-energy (LFGTE) projects along with Bitcoin mining. It takes into account Bitcoin’s fluctuating market value and the cost of electricity.
Thus, it analyzes the economic implications and strategic advantages of this integration. Through this method, the analysis gives the readers a view into the financial cases and the possible results.
Bitcoin mining and landfill gas-to-energy integration
Bitcoin miners can utilize landfills as sites, since every landfill has a typical size of 7.8 million cubic meters of landfill gas that is emitted every year. The electricity generated would be enough to power the mining operations. The cost of landfills for this purpose is estimates to be around $2.5 million per megawatt. Also suggests revenue-sharing models to reduce the financial risks of both developers and landfill owners.
Moreover, the study analyzes the possible economic consequences for landfill owners and Bitcoin miners and stresses the fact the type of business structures and the revenue-sharing models will be the main factors that will determine the financial results. The landfill operators, for instance, could get a gross revenue share of 5% to 30% depending on the capacity of the electricity generation plant.
Capturing methane and combining it with Bitcoin practice can be an exciting development, but the study also points out dangers such as Bitcoin price volatility and regulatory shifts. These risks can be manages by adopting strategies like revenue-sharing models and partnerships.
