Dear Subscriber
Welcome to The Bitcoin ESG Forecast.
The main story this week is visit I had to a renewable mining operation on a volcano in Costa Rica that saved 60 Ha of land from leaving the family after 5 generations. The lessons learnt give a blueprint for how Bitcoin mining can accelerate the energy transition, prevent waste, and enhance energy security, without government subsidies.
But first, here’s the highlights of the past few weeks.
Top Picks
The Bitcoin Policy Institute released a report examining Bitcoin and AI's current and future energy impact. The findings highlight a key difference: Bitcoin mining, unlike AI, can lower carbon emissions.
This is mainly because miners can easily switch to renewable energy sources. Also, Bitcoin miners can scale back power consumption during grid stress, potentially offsetting millions of tons of CO2 emissions each year.
Meanwhile, DARI's latest paper by Simon Collins exposes years of flawed Bitcoin mining research, which influenced media and policy despite fundamental methodological issues.
This research, published between 2014-2021, was widely cited due to journal editors' lack of expertise and over-reliance on de Vries' work. Recent studies with sound methodologies have shown Bitcoin's positive environmental impact.
This has shaped policy discussions and misinformed the public, fostering skepticism around Bitcoin's role in renewable energy. Simon Collins' paper calls for better peer-review practices and a more balanced evaluation of Bitcoin's environmental potential.
Trailblazers
Bitcoin miners are finding innovative ways to repurpose heat from their operations. Recently, @MountainHasher integrated Bitcoin mining rigs to provide heat in a greenhouse. The setup allows heat from the mining rigs to thermostatically control heated soil via a water loop connected to a heat exchanger. The setup optimizes energy use while keeping the greenhouse temperature stable.
Meanwhile, TEPCO, Japan's largest energy provider, has begun mining Bitcoin through its subsidiary, Agile Energy X, using surplus renewable energy.
By redirecting excess power from solar farms in regions like Gunma and Tochigi, TEPCO can reduce wasted energy and accelerate its own green energy expansion, by reinvesting the additional revenue from Bitcoin mining into increasing the size of its solar farm.
Iris Energy has achieved 20 EH/s in Bitcoin mining capacity , all powered by renewable energy. The company plans to expand to 31 EH/s by the end of 2024 and aims for 50 EH/s in 2025.
Features
Earlier this month, on an episode of 21 Voices by Swan Bitcoin, I got featured in a discussion on how Bitcoin mining can support the transition to renewable energy, grid stabilization, and emissions reduction, contributing positively to the environment. (18 min watch)
More recently, Nik of The Bitcoin Layer podcast expanded on my list of 19 lesser-known Bitcoin benefits, emphasizing its role in financial inclusion, environmental impact, and protection against inflation and government overreach, showcasing Bitcoin's global financial revolution. (37 min watch)
And now to the highlight of this episode…
Main Story
This is not a story of terahash and megawatts. It’s the story about Eduardo. A man living less than an hour from me, on the jungle-clad side of the Poás volcano in land his family had owned for 5 generations in Alajuela province of Costa Rica.
Many years ago, he’d had the smart idea to build a renewable microhydro station, to use the untapped power of the river that ran down the side of the volcano.
The project was successful, but capital intensive. He took out a loan to pay for the investment, and life was good. For many years sold the power generated back to the grid, earning a steady profit each year.
Then COVID hit.