Flared & Vented methane
Summary
Methane is one of the most potent greenhouse gasses (80x more potent than CO2). Reducing methane emissions is crucial in combating climate change.
Methane flaring is a common practice where methane is converted into CO2 rather than released into the atmosphere. This practice is costly and has no economical benefits.
Approximately 200 billion cubic meters (bcm) of gas are flared each year, resulting in a significant loss of energy. 55 bcm are simply vented into the atmosphere.
Bitcoin mining can utilize this flared or vented methane, providing a highly profitable alternative to flaring. Mining Bitcoin becomes a competitive advantage.
Bitcoin mining that utilizes flared or vented methane becomes a carbon negative endeavor, reducing the climate impact of energy producers and landfills.
255 bcm of methane are currently lost
Methane is one of the most potent greenhouse gasses. Each methane molecule is equivalent to 80 molecules of CO2. According to the United Nations Environment Program, reducing methane emissions is the most powerful lever to mitigate climate change.
In this context, gas flaring is a common practice involving the burning of methane (converting it into CO2) to prevent its direct release into the atmosphere. In most cases, gas flaring is associated with landfills and oil companies during oil field operations. Many fields contain methane in quantities too small to be economically productive, so it is flared due to a lack of market demand.
Approximately 200 billion cubic meters (bcm) of gas are flared each year. If it were converted into electricity, it would be equivalent to 75% of the annual production of the entire European Union. Despite growing awareness of the issue, the amount of flared gas continues to increase each year.
The problem arises from the fact that methane flaring represents a cost for companies, which limits their incentives. It is estimated that more than 55 bcm of methane are simply released each year into the atmosphere without combustion.
Bitcoin mining as a solution
Bitcoin mining is currently the best solution capable of utilizing this flared or vented methane in a profitable way. In this context, Bitcoin mining becomes a carbon-negative endeavor, meaning it actually reduces the overall environmental impact.
With its great flexibility and ability to be set up anywhere without impacting other logistical chains, Bitcoin mining has the potential to become the world's largest contributor to methane emission reduction.
While other technologies allow for methane storage or capture, what makes Bitcoin mining unique is that capturing methane becomes a source of income rather than a cost. Through Bitcoin mining, energy companies maximize their revenue while taking a beneficial action for the environment.
The lack of economic incentive to treat methane is the main reason behind the dramatic findings mentioned earlier: the immense amount of untreated methane released into the atmosphere; and the stagnation of efforts and results observed over the past decade.
Bitcoin mining offers a rapidly deployable alternative, with proven efficiency, that alone can achieve 50% of the United Nations' objectives by 2045. By directly remunerating each ton of methane used, energy producers who utilize their "wasted" methane to mine Bitcoin become more profitable than their competitors while significantly reducing their environmental impact.
Bitcoin mining using vented or flared-methane represents the most powerful incentive program for climate action.
Benefits of Bitcoin mining
Bitcoin mining presents an opportunity to capture and utilize Flared or Vented methane while generating profits
Profitability
Unlike other methods of methane capture or storage, Bitcoin mining generates revenue for energy producers, transforming the captured methane into a valuable resource rather than a cost.
Emissions reduction
Bitcoin mining enables the capture and utilization of methane that would otherwise be released into the atmosphere, helping to reduce greenhouse gas emissions.
Flexibility
Bitcoin mining can be rapidly deployed without impacting existing logistical chains. It can be installed wherever methane is available, providing an adaptable solution for different situations.
Competitive advantage
By directly incentivizing the use of wasted methane, Bitcoin mining empowers energy producers to become more profitable than their competitors. While doing so, they actively engage in methane emission reduction, contributing to climate goals.
Bitcoin mining is the optimal solution enabling energy producers and landfills to profitably utilize otherwise wasted methane
0%
Methane flaring is only 92% efficient, whereas Bitcoin mining converts 99% of methane into CO2.
0bcm
200 bcm of methane are flared annually and more than 55 bcm are vented
0x
The environmental impact of methane is 80 times higher than that of CO2.
Crusoe’s success story from mining Bitcoin with Flared methane
4 BCF
In 2022, Crusoe captured over 4 billion cubic feet of gas, avoiding about 509’000 metric tons of carbon dioxide equivalents emissions.
550 $Mio
Crusoe Energy Systems raised $550 Million in Venture Capital, led by climate technology investors G2 Venture Partners
Sustainable practices
Crusoe Energy’s approach to Bitcoin mining is an excellent example of how technology can be utilized to reduce waste and promote sustainable practices. Their innovative use of waste energy sources to power their Bitcoin miners is not only beneficial for the environment but also serves as a reminder that Bitcoin can play a significant role in promoting eco-friendly practices.
“ Crusoe is on a mission to help the oil industry reduce the routine flaring of natural gas. Crusoe Energy Systems provides oil and gas companies with a fast, low-cost and simple solution to natural gas flaring.”