Bitcoin Mining Shifts to Cleaner Energy as Coal Use Declines

According to a MiCA Crypto Alliance and Nodiens report , coal energy’s share in Bitcoin mining has decreased from 63% in 2011 to 20% in 2024, indicating an average annual decline of about 8%.

Renewable energy use in Bitcoin mining has increased, with an average annual rise of 5.8% in the share of renewables. This indicates a shift towards more sustainable mining practices, and experts expect this trend to continue, helping to lower Bitcoin’s carbon footprint in the future.

This shift contrasts with a global surge in coal consumption. According to the International Energy Agency (IEA), coal use hit a record high in 2024, with an estimated 8.8 billion tonnes consumed worldwide. The IEA forecasts that global coal demand will remain close to record levels through 2027, mainly driven by emerging economies like India, Indonesia, and Vietnam, where coal consumption is expected to rise sharply.

The report presents five scenarios for Bitcoin’s energy consumption by 2030, varying from a bearish estimate of $10,000 to an optimistic $1 million per BTC. In a medium scenario with Bitcoin priced at $250,000, renewable energy is expected to represent 59.3% to 74.3% of total electricity usage, excluding nuclear power. It also predicts that Bitcoin’s energy consumption will peak around 2030, aligning with findings from a prior NYDIG study . Even under an optimistic high-price scenario, Bitcoin’s electricity demand is projected to be 11 times higher than in 2020. Yet, it would still constitute only 0.4% of global primary energy consumption and 2% of global electricity generation.

Meanwhile, Crusoe Energy, a company that repurposes waste gas from oil production to power high-performance computing, is shifting its focus towards artificial intelligence by exiting the Bitcoin mining sector. The company announced plans to sell its Bitcoin mining operations and digital flare mitigation business to New York Digital.

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