Can Crypto Mining Go Green?

Crypto miners are rebranding.

The notoriously energy-intensive industry says it can not only consume electricity responsibly, but also improve nation’s power system, writes POLITICO’s E&E News reporter Jason Plautz.

That’s a tall order for an industry that uses more energy per year than Australia. “Mining” of bitcoin and other types of digital currency – where computers solve complex tasks around the clock – has led to large increases in demand in some areas.

When these regions rely on coal and natural gas for their electricity, that’s bad news for cutting planet-warming pollution.

But the industry’s days of unrestrained power use may be coming to an end. Aware that some states are considering regulatory work, companies are trying to clean up their environmental image.

John Olsen, who works for the Blockchain Association, told Jason that there are ways crypto mining can boost the clean energy market and help stabilize the grid.

For example, he said, some miners have set up shop in areas where wind and solar power outpace demand for it. That, he argued, is a win-win, offering large-scale renewable projects a reliable consumer of power that would otherwise be wasted.

While crypto miners need a lot of power, they don’t need it continuously – potentially making them the ideal customer for intermittent wind and solar power. In theory, it could bring more low-carbon power into the grid.

Major bitcoin miners have also backed a new company called the Sustainable Bitcoin Protocol, which will certify bitcoins mined with 100 percent low-carbon power — a plus for eco-friendly users.

Risk versus benefit

For some states, the lure of becoming the hub of an emerging technology outweighs the risk. Texas has been actively recruiting cryptocurrency miners. And the state offers benefits to companies that reduce energy use when demand for power is high, stabilizing the grid during winter storms and heat waves.

But critics say that even with efficiency improvements, the amount of energy needed to mine cryptocurrency is unsustainable. According to a report from the White House, the industry accounted for between 0.9 percent and 1.7 percent of the country’s total electricity consumption – higher than all residential lighting.

That has prompted some states to begin regulating the industry. New York Governor Kathy Hochul (D) imposed a moratorium on new crypto mining last year. And other state and local authorities have placed their own restrictions on new mining and imposed requirements that it be operated exclusively with wind, solar or hydropower.

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