Mining is often criticised for the huge amounts of electricity it consumes and the emissions it produces. Mining releases up to 40 million tonnes of carbon dioxide into the atmosphere every year. However, modern miners are not being left behind and are finding green solutions to turn an energy-intensive process into a source of profit and sustainability.

In this article, we'll look at eight companies that are successfully combining bitcoin mining with environmental responsibility. Learn how they are harnessing the power of volcanoes, surplus natural gas and even coal industry waste to mine bitcoin sustainably and cost-effectively.

What makes mining so energy intensive?

The high energy consumption of mining is an inherent feature of the Proof-of-Work (PoW) algorithm. This mechanism, which is used to verify bitcoin transactions and create new blocks in the blockchain, requires complex calculations performed by powerful specialised hardware — ASIC miners. Satoshi Nakamoto, the creator of bitcoin, compared the process to gold mining in 2010: it is costly, but the benefits outweigh the energy costs.

The rising price of bitcoin only exacerbates the problem. The higher the value of the cryptocurrency, the more participants are involved in mining, increasing the total amount of computation. For example, in April 2021, when the price of BTC reached $64,000, the network's energy consumption exceeded that of the entire country of Argentina.

In addition, a typical mining rig with three graphics cards consumes more than 1,000 watts of power while operating. By comparison, large mining operations can have thousands of such devices, significantly increasing their total power consumption. For example, one of the largest farms in the world has more than 50,000 graphics cards.

Energy costs have a significant environmental footprint. Generating electricity from fossil fuels produces carbon emissions, making mining a contributor to climate change. A single transaction on the bitcoin network uses a million times more energy than processing a Visa payment, and will continue to do so until the last bitcoin is mined in 2140.

Green mining: myth or reality?

Criticism of traditional mining has pushed the industry towards sustainable solutions. Green mining uses renewable energy sources such as solar, wind, hydro and geothermal power. This approach not only reduces the carbon footprint, but also drives technology development.

According to the Bitcoin Mining Council (BMC), by 2023, 59.9% of the energy used in the industry came from renewable sources. This has allowed the bitcoin network to surpass even Germany in its use of green energy. What's more, advances in semiconductor technology are helping to improve the energy efficiency of equipment, resulting in a 46% reduction in energy costs each year.

In this way, mining is becoming part of a sustainable energy system, contributing to the economic development of regions with excess electricity.

Nature at the service of technology: real cases of green mining

1. Scrubgrass Generating, USA.

A power plant in Pennsylvania converts waste from the coal industry ('gob') into energy for mining. About 80% of its electricity is used to power energy-intensive bitcoin mining computers. This not only recycles industrial waste, but also produces bitcoins with minimal environmental impact.

2. Lone Star State, USA.

A large-scale solar and wind project is being built in Texas with a combined capacity of 16GW, more than the region's standard needs. The excess energy will be used to power the mining facilities, which will be able to shut down during peak demand and return energy to the grid.

3. Genesis Digital Assets, Sweden.

This Swedish giant uses mainly wind and hydro power to minimise its carbon footprint. It is also actively investing in energy-efficient technologies to increase the productivity of its farms and reduce operating costs.

4. Crusoe Energy Systems, USA.

The company uses 45 shipping containers filled with ASIC miners that run on natural gas. This converts excess natural gas, which would normally be burned in oil fields, into an energy source for mining. This not only reduces methane and carbon dioxide emissions, but also helps to utilise natural resources that would otherwise be wasted.

5. Greenidge Generation, USA.

An old coal-fired power station has been converted to run on natural gas, reducing carbon dioxide emissions by 70%. In addition to mining, the company supplies electricity to the local grid. Greenidge is also actively implementing emission control technologies to make its operations more environmentally friendly.

6. Link Global Technologies, Canada.

The company uses methane and excess energy from Canadian power plants to power sustainable bitcoin mining. The farms are located in remote regions, allowing efficient redistribution of energy and minimising strain on the power grid.

7. Lava Pool, El Salvador.

The project uses geothermal energy from the Conchagua volcano for environmentally friendly bitcoin mining. The initiative is supported by the government of El Salvador, the first country to recognise bitcoin as an official currency. The use of volcanic energy makes Lava Pool one of the most innovative and environmentally friendly projects in the crypto industry.

8. HydroMiner, Austria.

HydroMiner harnesses hydropower for mining by locating farms near rivers and hydroelectric power plants. As a result, the company's electricity costs are 85% lower than the European average.

Modern miners are increasingly using clean energy. Today, 60% of the energy used in mining comes from renewable sources. This not only reduces the environmental footprint but also opens up new prospects for sustainable development, making mining an example of responsible use of the planet's resources.