Can bitcoin mining empower energy transition and fuel sustainable development goals in the US?

Abstract

The transition to renewable energy in the US, vital for Sustainable Development Goals (SDGs) 7 and 13, faces economic obstacles, leaving a knowledge gap regarding potential innovative solutions to accelerate this shift. Simultaneously, the energy-intensive nature of blockchain applications like bitcoin mining is a cause for climate concerns. This work addresses the previously unanswered research question of whether bitcoin mining can be strategically used to harness surplus renewable energy from forthcoming clean energy installations, bridging the gap between economic viability and SDGs. Specifically, we conduct a comprehensive analysis, comparing the economic returns of bitcoin mining with three alternative chemical-based energy storage systems, including hydrogen, ammonia, and methanol, all powered by planned renewable sources. Mixed-integer linear programs were formulated to determine the maximum profits that can be obtained based on power utilization from planned renewable installations using varying alternatives. Results suggest that bitcoin mining is profitable in 80 out of 83 examined planned installations, generating a maximum profit of $7.68 million and harnessing 62% of the available renewable energy. Therefore, integrating bitcoin mining with planned renewable installations offers a dual solution of bolstering investments in the renewable energy sector while addressing climate concerns associated with conventional mining operations.