Brisbane, Australia - With the rise and significant adoption of Bitcoin over the past few years, electricity consumption of Bitcoin mining calls for new approaches regarding the use of energy resources. Based on the assumption that Bitcoin is here to stay, it is worth discussing how Bitcoin mining can support the transition to a more sustainable economic future and how transformation ESG strategies of building renewable energy power plants with the commitment of mining Bitcoin, can provide positive environmental results.
When Bitcoin was created back in circa 2009, the amount of energy required to mine a single Bitcoin was comparable to the electricity consumption of an average household for a few seconds. Today, however, the equivalent of eight years’ electricity usage of a typical household is needed to mine a single Bitcoin. Globally, the mining of Bitcoin consumes more than 129 terawatt-hours of electricity per annum, totalling as much as Finland’s electricity consumption. This enormous electricity usage, which accounts for almost half a percent of the world's total electricity consumption, has increased tenfold only in the past six years alone.
So, what is Bitcoin mining? Put simply, Bitcoin mining is the means by which more Bitcoin is created, noting that its total supply is fixed at 21 million. Bitcoin mining, however, is an essential process to how the Bitcoin ecosystem works and functions for Bitcoin to operate in a decentralised manner (without any central control or operations). To verify peer-to-peer transactions and maintain the blockchain ledger, Bitcoin requires vast computer power to solve these increasingly complex mathematical problems. This process is how Bitcoin operates, with the foundations and the basic concept known as proof-of-work.
With extreme macro-economic factors causing energy prices to rise over the past few years, alongside a significant increase in expected energy shortages, the demand that scarce electricity be used for the real economy, and not for Bitcoin mining, is very reasonable.
However, until recently, Bitcoin mining has been disregarded as a means to support and accelerate the global energy transition towards renewable energies by serving as an additional technology for the generation and storage of clean energy. How can this be? This is because new ideas and innovation has taken the Bitcoin network and ecosystem to potentially serve as a flexible energy buyer of last resort energy to balance fluctuations in renewable power generation and demand. A store of energy perhaps, rather than just a store of value? One such company which fundamentally believes in this hypothesis and has emerged with disruptive plans to double down on this architype is Z2T Energy (Z2T).
Z2T, is a newly formed Australian-based digital asset technology and energy company on a mission to create a unique and sustainable, green-driven crypto Bitcoin mining ecosystem, which aims to support renewable energy providers by providing a load stabilisation mechanism in the form of its bitcoin mining operations.
Launched in July of 2022, Z2T is on the pursuit to develop large-scale mining operations in Australia, North America, and South-East Asia. The Z2T project plans to become a leading Bitcoin industry miner by utilising only carbon-neutral and renewable energy sources. At its infancy Z2T wants to maximize return on assets by investing only in Bitcoin miners rather than infrastructure, before moving to a phase two, which involves a hybrid energy and bitcoin mining operation and partnerships with local renewable energy projects.
Co-founded by leading Australian renewable energy and finance lawyer Kaz Patafta (CEO) and Zac Anderson (COO), Z2T is an essential project which is very close to the founding duo. Z2T CEO, Kaz Patafta, detailed “energy companies that build renewable energy power plants and use surplus or low peak energy generated to mine Bitcoin will achieve a higher profitability than if they were to sell the electricity solely to the grid at market prices. Their "green" power plants can then invest additional profits in further clean energy projects or other projects that meet ESG criteria, which is something we care about immensely. Bitcoin mining can thus support the shift to a more sustainable economy and be in line with our national and global climate goals.”
Since launching in July, the pair have had increasing support from mid-tier renewable energy industry providers, offering strong support that their endeavor to capitalize on off peak energy consumption is important to support grid stability. “Green power plants could be connected to the grid earlier and become profitable sooner, with thanks to bitcoin mining and Z2T. Market peers in the United States, with large scale wind farms and deregulated electricity grids, are seeing approximately 70% of Bitcoin production mined by renewable energy,” stated Mr Anderson.
With a large shift and increased investment into renewable energy projects, Z2T is well positioned to support and harness additional energy to mine an asset class which is growing in adoption daily.
Name: Zac Anderson