According to Decrypt, a new study by researchers at Cornell University suggests that Bitcoin mining could help combat climate change by promoting the transition to renewable energy. The study, titled 'From Mining to Mitigation: How Bitcoin Can Support Renewable Energy Development and Climate Action,' examined planned renewable energy projects in the U.S. and calculated the potential profit from Bitcoin mining during the precommercial development phase. During this phase, wind and solar farms produce energy but are not yet connected to the grid. The study found that this surplus energy could generate millions of dollars in Bitcoin, which could then be invested in future renewable energy projects.
The press release accompanying the study revealed that Texas alone could generate combined profits of $47 million across 32 planned renewable energy projects. The 250-megawatt Aktina Solar and Roseland Solar projects could potentially generate a profit of $3.23 million each, while the 367-megawatt Western Trail Wind project could account for an additional $2.65 million. The states of California, Colorado, Illinois, Iowa, Nevada, and Virginia also have renewable projects that could potentially profit from Bitcoin mining during the precommercial development phase, according to the study.
The researchers behind the study suggested offering economic incentives for environmentally friendly crypto mining, such as carbon credits for avoided emissions. Co-author Apoorv Lal said that these rewards could encourage miners to adopt clean energy sources, leading to combined positive effects on climate change mitigation, improved renewable power capacity, and additional profits during the precommercial operation of wind or solar farms. Lal also recommended incentivizing mining operations to return some of their profits to renewable infrastructure development, creating a self-sustaining cycle for renewable energy expansion.
