Study suggests combining crypto mining and green hydrogen can improve clean energy

Combining crypto mining, which is known to consume large amounts of carbon-based fuels, with green hydrogen could provide the foundation for broader deployment of renewable energy such as solar and wind, according to new research from Cornell University. may be obtained.

“Current crypto operations currently contribute significantly to carbon emissions around the world, so we look for opportunities to leverage widespread enthusiasm for cryptocurrencies as we move towards a sustainable and climate-friendly future.” “This is extremely important,” said Fengqi You, professor of energy systems engineering. Cornell.

You and PhD student Apoorv Lal are the authors of “Climate Sustainability with a Dynamic Duo: Energy Transition and Decarbonization with Green Hydrogen and Cryptography.” Proceedings of the National Academy of Sciences.

Their research shows how the use of energy-intensive cryptocurrency mining and green hydrogen technology (which they call the “Dynamic Duo”) can boost the renewable energy sector. .

“By building green hydrogen infrastructure that supports the generation of cryptocurrencies, we can accelerate renewable energy and create a more sustainable energy environment,” Lal said.

Harnessing clean energy sources to power blockchain mining operations and fuel green hydrogen production will lead to increased wind and solar power production, creating sustainable energy across the country. Researchers say production could be scaled up.

As currently structured, mining blockchain-based cryptocurrencies in the United States could use as much carbon-based energy as all of Argentina, according to a 2022 White House Office of Science and Technology report. Nearly all domestic cryptocurrency mining power is driven by a computer-power-hungry consensus mechanism known as “proof of work” used to verify crypto assets.

Preliminary estimates from the U.S. Energy Information Administration suggest that annual electricity consumption from cryptocurrency mining will likely represent 0.6% to 2.3% of total U.S. electricity consumption in 2023.

“Recognizing that crypto mining has significant energy demands, our research proposes innovative technological solutions,” you said. “Leveraging cryptocurrencies as virtual energy carriers alongside the use of green hydrogen can transform what was once an environmental challenge into a dynamic force for climate mitigation and sustainability.”

In their study, You and Lal looked at each state in the United States and assessed each region's potential energy intensity.

According to the paper, supporting cryptocurrencies could help build additional energy infrastructure, with each Bitcoin mined in New Mexico, for example, potentially producing 78.4 megawatt-hours of solar power, and Wyoming. For every Bitcoin mined, 265.8 megawatt hours of wind power could be generated.

“The dollar value of cryptocurrencies is high right now (Bitcoin was trading at over $73,000 as of March 13), but you can't hold it in your hands,” Yu said. “It's virtual. Think of cryptocurrencies and energy in the same way. It's a lot like the concept of a gift card. Cryptocurrencies can also hold energy value, and that becomes an added feature. ”

The researchers said advancing a sustainable future for blockchain-based cryptocurrencies requires pushing for stronger federal policies on climate change goals and renewable energy.

“Combined with green hydrogen, this approach to cryptocurrencies not only reduces its own environmental impact, but also paves a sustainable path towards the transition to renewable energy.” said You. “It's a novel strategy.”

You are a senior faculty member at the Cornell Atkinson Center for Sustainability.