Mining has traditionally been criticized for its environmental impact and energy use. This article discusses an industry where mining can have an immediate positive impact: fossil fuel operations.
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There has been a flurry of activity across the world’s three largest economies on methane issues in the energy sector ahead of COP28 in Dubai in November 2023. That month, China announced its long-awaited Methane Emissions Control Action Plan, followed by the China-US Sunnylands Statement on Strengthening Cooperation to Address the Climate Crisis, and the European Council and Parliament on new rules to reduce methane emissions from the energy sector. The deal was announced. sector. Many emitting countries, such as Kazakhstan and Turkmenistan, have joined the 150 signatories of the Global Methane Pledge.
This trend continued when 50 oil and gas companies, representing 40% of global oil production, signed the Oil and Gas Decarbonization Charter and pledged to end methane emissions and routine gas flaring by 2030.
Finally, the world is realizing that if it has any chance of limiting global warming to 1.5 degrees by 2050, it must act decisively to stop the emissions and combustion of methane from the global oil, gas and coal industries. .
But amidst the excitement, what is being forgotten is that capturing and utilizing methane is essential to reducing its explosions and emissions. The question no one is asking is what to do with all this methane.
The bad and the ugly about fossil fuel methane
Methane emissions in the atmosphere have tripled since the start of the Industrial Revolution, and are estimated to have increased by about half a degree compared to one degree of warming so far. The International Panel on Climate Change says we must take decisive action on methane if we are to have any chance of limiting global warming to 1.5 degrees by 2050.
The International Energy Agency’s (IEA) Methane Tracker estimates that one-third of human methane emissions come from the production, transportation and use of fossil fuels. This amounts to a total of approximately 120 million tonnes of methane per year, distributed equally between the oil, gas and coal industries. The impact is equivalent to 10 billion tons of carbon dioxide, which is more than the CO2 emissions of the United States and the European Union combined.
The IEA’s Net Zero roadmap to 2050 states that the energy sector must reduce methane emissions by 75% by 2030, mainly through “rapid deployment”, to limit global temperature rises to 1.5°C above pre-industrial levels. Actions and technologies to eliminate avoidable methane emissions by 2030.”
Mether Tracker shows that 75% of global fossil fuel methane emissions come from 10 regions.
Bitcoin mining’s potential role in reducing greenhouse gases
In September 2022, the White House Office of Science and Technology Policy released a report on the climate and energy impacts of U.S. cryptocurrency assets. One of the report’s conclusions: “Crypto-asset mining operations that capture vented methane to generate electricity could have positive climate outcomes by converting the potent methane into CO2 during combustion… “It is potentially more reliable and more efficient at converting methane to CO2 (than flaring)… and is more likely to help rather than hinder U.S. climate goals.”
The IPCC estimates that over 20 years, one ton of methane has the equivalent climate change impact of 80 tons of carbon dioxide. Hiveon, a top-rated mining product suite, says that using the methane emissions to generate the electricity needed to produce one Bitcoin would reduce greenhouse gas emissions equivalent to 6,000 tons of CO2, or the annual emissions of 1,400 passengers. I calculate that there is. American cars.
“We acknowledge the carbon emissions of the cryptocurrency industry, but we also believe in its ability to serve as an important tool in combating climate change. That’s why we launched it. HiveOn Energy, a project that intersects the blockchain field and the traditional energy industry. “This contributes to making mining more sustainable while reducing greenhouse gas emissions.” – Andrii Garanin, Vice President, Hiveon Energy.
Just 1 MW of Bitcoin mining equipment can destroy more than 800 tons of methane per year, providing greenhouse gas reductions equivalent to a typical 140 MW solar installation in the United States. Considering that the global Bitcoin industry requires 10-15 GW of power generation capacity, there is enormous potential to reduce methane emissions.
Reasons for mining
The IEA estimates that 75% of methane emissions from oil and gas production and about 50% from coal could be captured and used. Methane is a valuable commodity, but there’s a reason so much of it is released without being sold or utilized.
This is because most of the energy sector methane emitted is almost by definition a stranded gas. Fossil fuel operators are profit driven, so if there was a way to monetize wasted methane, they would do it.
The methane emissions come from areas such as Shaanxi Province, Inner Mongolia, the Middle East, and the Caspian Sea. The region is already a large producer of fossil fuels, so there are few natural gas customers. LNG must be transported to customers by pipeline or by electricity, which requires extensive investment in infrastructure and significant legal, regulatory and commercial barriers.
These investments have long payback periods, which is difficult in the current environment where the world must rapidly reduce fossil fuel production.
The mining industry can act as a global buyer of stranded natural gas. Miners do not need access to the power grid or power markets. All you need is a gas supply, land and an internet connection.
Most importantly, these projects can use modular mobile solutions, allowing equipment to be moved easily and inexpensively if localized problems with gas supply or power demand arise.
What are your future plans?
Undoubtedly, the global cryptocurrency industry consumes a lot of electricity, some of which comes from burning fossil fuels. However, it is also a major potential customer for methane emissions and offers a huge opportunity to reduce methane emissions globally.
The biggest barrier is the lack of knowledge among global policymakers and the mining industry about the operations of these companies. Despite these challenges, policies are needed that encourage the use of released gases, or at least do not hinder it with regulations such as a complete ban on mining.
Dr. Sultan Al Jaber said: “If we don’t fix the energy we use today, the world will fall apart. “If we don’t mitigate emissions on a gigaton scale, the world will fall apart.”
This is a guest post by Andrii Garanin. The opinions expressed are solely personal and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.