4 ways mining positively impacts energy production

1. Strengthening electrical grids

The growth of renewable energy increases the need for flexible electricity, as the supply is unstable and uncontrollable. Bitcoin mining is the best alternative for this due to its low cost and the possibility to respond immediately in the required size and constancy. This way, it is possible to design electrical grids that provide more stable and constant energy. Bitcoin can consume stranded energy that would be wasted due to lack of demand. This makes it possible to build networks with greater generation capacity, as there is now an alternative consumer who monetizes the energy generated outside the peak demand of cities and industries.

2. Improving Renewable Energy Savings

The major obstacle in using renewable energy today is associated with energy supply and demand.

The capture of solar energy, for example, works very well during the day and peaks at lunchtime, but at night, for obvious reasons, it does not. Wind energy, on the other hand, has its peak of energy capture mostly during the dawn. Unfortunately, both midday and dawn are not times where there is a great demand for energy, despite the great supply.

So, bitcoin mining could be essential for the energy transition to renewable energy, as wind and solar projects rely on flexible consumers, such as bitcoin miners, who can buy excess energy.

3. Mitigating flaring

Natural gas is produced as a by-product of oil drilling, and despite having excellent energy potential, companies often do not use it and end up burning it.

By law, it is not allowed to release this gas directly into the atmosphere, as it contains many pollutants (among them methane, one of the most polluting greenhouse gases). The oil producer then needs to burn the gas on-site, in a process called flaring. Thus, natural gas is transformed into CO2, which is much less polluting for the atmosphere. However, burning this gas generates a cost for companies, and due to a lack of incentives, they often choose to just release the natural gas into the atmosphere, in a process we call venting.

Whether flaring or venting, in the end, our planet is polluted without generating any use for us human beings.

Bitcoin mining emerged as a technology to reduce the flaring/venting of biogas, using it as a energy source for mining. Mining companies can buy surplus gas from companies and use it for mining. In this way, a system is created where there are incentives to sell surplus energy from oil drilling, to not release biogas into the atmosphere without any use, and also reduce pollutant gas emissions.

4. Reusing heat waste

Most of the world’s energy is used to heat homes, industries and other activities, and heat is a by-product of bitcoin mining. Therefore, it is possible to reuse this by-product.

Today we can already see bitcoin mining being used to heat houses and even greenhouses around the globe. Very cold regions such as Canada and Scandinavia already use waste heat from mining for heating as well.

Thus, it is possible to reduce energy costs for heat production, reduce emissions (if the machines are powered with renewable energy), and use the same energy twice, offsetting the energy spent on mining.

Source: https://arcane.no/research/how-bitcoin-mining-can-transform-the-energy-industry-summary