Crypto miners are rebranding. The infamously energy-intensive industry says it can not only consume power responsibly, but also improve the nation’s power system, writes POLITICO’s E&E News reporter Jason Plautz. It’s a tall order for an industry that uses more energy per year than Australia. The “mining” of bitcoin and other types of digital currency — during which computers solve complex puzzles around the clock — has driven large increases in demand in some areas. When those regions rely on coal and natural gas for their electricity, it’s bad news for cutting planet-warming pollution. But the industry’s days of unfettered power use may be coming to an end. Aware that some states are considering a regulatory crackdown, companies are seeking to clean up their environmental image. John Olsen, who works for the Blockchain Association, told Jason there are ways crypto mining can boost the clean energy market and help stabilize the grid. For example, he said, some miners have set up shop in areas where wind and solar power outpace the demand for it. That, he argued, is a win-win, offering large-scale renewable projects a reliable consumer of power that would otherwise be wasted. While crypto miners need a lot of power, they don’t need it continuously — potentially making them the ideal customer for intermittent wind and solar energy. That could, in theory, drive more low-carbon power onto the grid. Major bitcoin miners have also backed a new company called Sustainable Bitcoin Protocol, which would certify bitcoins mined with 100 percent low-carbon power — a plus for environmentally minded users. Risk versus benefit For some states, the lure of becoming the hub for an emerging technology outweighs the risks. Texas has actively recruited cryptocurrency miners. And the state offers benefits to companies that curtail their energy use when demand for power is high, stabilizing the grid during winter storms and heat waves. But critics say that even with efficiency improvements, the amount of energy needed to mine cryptocurrency is unsustainable. According to a White House report, the industry accounted for between 0.9 percent to 1.7 percent of the country’s total electricity usage — higher than all residential lighting. That’s prompted some states to start regulating the industry. New York Gov. Kathy Hochul (D) imposed a moratorium on new crypto mining last year. And other state and local governments have placed their own restrictions on new mining and imposed requirements that it run exclusively on wind, solar or hydro power.
| 
No comments:
Post a Comment