As a trusted partner to the renewable energy industry, AEI assists in developing clean crypto mining facilities.
The first step in solving a relationship problem is to admit you have one.
Cryptocurrency is married to energy. It can’t exist without computers and computers can’t exist without electricity. The trouble lies in energy’s codependency on fossil fuels.
Cryptocurrency and Climate Risk
The Natural Resources Defense Council reported that Bitcoin—the market leader in cryptocurrency—now eats up half a percentage point of all the electricity consumed in the world, which is the annual energy usage of the entire country of Sweden.
Bitcoin has such a massive carbon footprint because of the electricity required for the mining process, which is how new digital coins are created. This is because every blockchain (a form of a digital ledger) or data center requires a large output of electricity necessary to compute, store, and send data. Cryptocurrency transactions take place in “mining rigs,” crypto-slang for data centers. Think of tens of thousands of warehouses stocked full of computers that receive, compute and store data.
While the everyday crypto trader might not have Bitcoin’s carbon footprint top of mind, Tesla’s CEO Elon Musk did. And he acted on it. In May of 2021, Musk announced on Twitter that the reason behind Tesla’s move to suspend vehicle purchases using Bitcoin was due to their reliance on fossil fuel. He further stated that Tesla is looking at other cryptocurrencies that use less than 1 percent of Bitcoin’s energy transaction.
Environmentally Friendly Cryptocurrency
It’s now a movement with legs—the crypto and blockchain players are embracing net-zero.
Inspired by the Paris Climate Agreement, a private-sector-led group of more than 200 crypto and blockchain industry players joined forces in 2021 and signed the Crypto Climate Accord (CCA), a public commitment to achieve net-zero emissions by 2030 through sustainable practices. This ambitious effort to decarbonize cryptocurrency prioritizes climate stewardship and creates a call-to-action to develop standards, tools, and technologies with the help of CCA supporters. Furthermore, the CCA boldly aims to accelerate the adoption of and verify progress toward 100 percent renewably-powered blockchains via proof of green Environmental, Social, Governance (ESG) reporting.
From policy, to a push from stakeholders and environmental organizations, to ESG initiatives, or a very public call-to-action from Elon Musk to Bitcoin, cryptocurrency recognizes its codependency on fossil fuels and is making strides toward a healthier relationship with energy.
Crypto is breaking up with fossil fuels and befriending renewables.
As a result,
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“The relationship between renewable asset owners and cryptocurrency traders can be mutually beneficial to provide more cost-effective energy for their trading operations and revenue for stranded surplus energy,“ said Christian Dick, vice president of development at Tri Global Energy, LLC, a renewable development firm. “For example, in West Texas, we are being approached by cryptocurrency companies seeking to co-locate with wind projects, natural gas, or solar assets that have surplus energy that risks being curtailed by the inner-connecting utility.”
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Environmentally Friendly Cryptocurrency is a Win-Win
It’s better for the environment and better for business as cryptocurrency producers drive more favorable Environmental, Social, and Governance (ESG) efforts and accelerate the use of clean energy.
At AEI, we’re all about better.
As a trusted partner in providing cost-effective solutions, AEI reduces risks associated with developing and maintaining energy efficient crypto facilities by identifying development concerns, which can diminish the likelihood of costly setbacks. We optimize for better and support clean blockchain development through our following services:
- Sustainability / ESG Efforts help stakeholders meet their ESG and sustainability reporting goals. This could include carbon footprint calculation and mitigation consulting, corporate sustainability reporting, environmental management/ISO implementation, etc.
- Permitting and Planning Services support agency outreach and maintain regulatory compliance at the local, state, and federal levels.
- Phase I Environmental Site Assessments (ESA) assists stakeholders in mitigating risk of potential or existing environmental contamination at the proposed property.
- Land Surveying & Mapping Services include ALTA/NSPS surveys that provide details concerning property boundaries and how they may relate to the title of a project site.
- Climate Risk and Resilience Assessments help stakeholders identify or anticipate hazardous events, trends, or disturbances that are directly or indirectly a result of climate.
- Risk Evaluations review current modeling and risk mapping resources to identify natural hazards that may impact a site.
- Vulnerability Assessments aid in reviewing property attributes and completing a site inspection to evaluate building components and conditions based on identified natural hazards.
- Risk Mitigation identifies measures that can be employed to make a facility more resilient to climate stressors, as well as cost estimates for proposed mitigation methods.
- Natural and Cultural Resource Studies help identify potential impacts to the natural environment, wetlands, threatened and endangered species and cultural resources. This greatly reduces costly penalties that may occur from local, state, and federal agencies.
- Construction Risk Management assesses the complexities, difficulties and risks associated with the construction of blockchain facilities, as well as the level of document preparation, and due diligence of a construction or renovation project.
- Review Construction Documents to ensure drawings, permits, due diligence reports, regulatory board approvals, schedules and budget have been properly prepared for the project.
- Review of Construction Budget using construction cost analysis tools to identify risks associated with budget structure, recommend adjustments to line-item costs, overhead/profit, hazardous materials managements and contingencies.
AEI is here to assess, report and advise blockchain facility developers – establishing a solid foundation, literally and figuratively, to construct energy efficient blockchain infrastructure. To explore our services further, please contact us at re@aeiconsultants.com.