Cornell Engineering’s recent study reveals that the combination of renewable energy like green hydrogen and carbon-intensive cryptocurrency mining could boost the adoption of renewable sources such as solar and wind energy.
Fengqi You, a Cornell Engineering’s Energy Systems Engineering professor, highlighted the potential of leveraging the global interest in cryptocurrency to create a sustainable and climate-friendly future. Today’s cryptocurrency operations contribute significantly to worldwide carbon emissions.
Alongside doctoral student Apoorv Lal, they authored “Climate Sustainability Through a Dynamic Duo: Green Hydrogen and Crypto Driving Energy Transition and Decarbonization.” Their paper explains how this ‘dynamic duo’ enhances renewable energy sectors by connecting green hydrogen tech with energy-consuming cryptocurrency mining.
According to Lal, establishing green hydrogen infrastructure for cryptocurrency production can expedite the transition to renewable energy sources, contributing to a more sustainable power landscape. He suggests that using clean energy to power blockchain mining operations while fueling the production of green hydrogen can elevate wind and solar capacity and expand eco-friendly energy production nationwide.
It’s important to note that the mining of blockchain-based cryptocurrencies like Bitcoin requires significant energy. A White House Office of Science and Technology report from 2022 compared its carbon-based energy use to that of Argentina. Preliminary estimates from the U.S. Energy Information Administration show that between 0.6% to 2.3% of all U.S. electricity consumption in 2023 will likely be for cryptocurrency mining.
Fengqi You underlined how their technology solution deals with the high energy demands of cryptocurrency mining. By employing cryptocurrencies as virtual energy carriers and incorporating green hydrogen, what was primarily an environmental challenge becomes a driving force for climate mitigation and sustainability.
In their regional analysis, they found that promoting cryptocurrency could trigger more energy infrastructure development. Consequently, this could generate an approximated 78.4 megawatt-hours of solar power for each Bitcoin mined in New Mexico and around 265.8 megawatt-hours of wind power for each Bitcoin mined in Wyoming.
Bitcoin, although valuable (trading for over $67,000 on March 25), is virtual, meaning it doesn’t have a physical presence. Yet, much like gift cards, these cryptocurrencies can store energy value—an additional function contributing to its sustainability potential.
Achieving a sustainable future for blockchain-based cryptocurrency involves intensifying federal policies for climate goals and renewable energy advancements. Paired with green hydrogen, cryptocurrency can pioneer a sustainable path for renewable energy transition.
