This is a viewpoint editorial by Daniel Batten, a Bitcoin ESG expert, environment tech financier, author and ecological advocate.
I didn’t get thinking about Bitcoin since of its capability to resolve monetary problems. My background remains in purchasing environment tech. When I initially became aware of Bitcoin, I was extremely hesitant and concerned it as an unfavorable to the environment. However, I was encouraged to put bias to one side and assess it as I would any other innovation I was doing due diligence on. After assessing the claims and information from both sides I reached the conclusion that on net balance, Bitcoin had the distinct capability to resolve more than one difficult-to-solve climate-change problem.
First, some context: I have actually been an environment activist because the 1990s. Several years back, I carried this into operating in the area of environment tech. Between 2014 and 2019, I circumnavigated New Zealand, hearing a few of the most intelligent individuals in the nation discussing their concepts, and assisting them to advertise them. Most of these concepts were some kind of environment tech. I came across over 200 various environment tech proposals throughout this time, and established my very first environment tech fund at the end of 2019.
Throughout that time, I never ever came across an innovation that had the immediacy, scalability and prospective effect of Bitcoin mining utilizing vented methane gas to measurably minimize international emissions pre-2030.
Bitcoin Mining And Methane Emissions
One day, as part of my work at the fund, I read a short article about methane emissions.
It stated that methane was 84-times more warming than co2 over a 20-year duration, that it was increasing parabolically which the UN stated “reducing methane is our strongest lever to reduce climate change!”
I was stunned. How, as an environment tech fund supervisor, could I have ignored dealing with methane emissions?
I did some more research study and discovered that I wasn’t the only one. Out of every $1 invested in environment tech, just 2 cents was approaching methane mitigation, I discovered.
That day, I got completely sincere with myself and asked, “How much of a difference am I making?” There was no doubt that we were purchasing some dazzling innovations and individuals that could minimize emissions on a worldwide scale. But it ended up that an absence of focus on methane mitigation was not my only oversight.
The tech we bought:
- Was high threat (it may never ever scale)
- Would just minimize emissions post-2030
- Wasn’t resolving our most immediate emission problem
I asked the concern, “Could I be doing more?” The response was, obviously, “Yes.” I could be purchasing innovations that were:
- Low threat
- Able to measurably minimize emissions pre-2030
- Able to resolve our number-one lever to minimize environment modification in the next 25 years (methane)
I began investigating more about methane-mitigation innovation. Most of it resembled carbon-dioxide-emission innovation: high-risk innovation that wouldn’t be available until after 2030. While there was no doubt that we should also be investing in those technologies, that was no longer my focus.
I decided that if I were going to create a third fund, it would be optimized for immediate impact, and maximize emissions reduced per dollar invested. Otherwise, there was no point.
So, I began researching two things:
- How to use low-risk technology available immediately to reduce emissions pre-2030
- What our major sources of methane were
To answer the first question, I looked at proven ways to reduce methane emissions using existing technologies. Reading the work of experts from the Environmental Defense Fund (EDF) and also the United States Environmental Protection Agency (EPA), there was little doubt that the technology existed to perform methane mitigation at scale today: power generation.
In other words, capturing that methane and sending it to a generator, turning it into electricity. OK, that sounds like a good idea, particularly with energy prices spiking globally, I thought.
So, I turned to our second question, “Where is most of our methane coming from?”
The answer, I found, was agriculture, oil and gas and landfills.
However, of those three, the one that seemed the easiest to do something about quickly was also the one that my calculations told me would be our number-one methane emitter by 2032, overtaking agriculture: landfills.
That led me to the question that changed everything I was doing: “Why isn’t this being done already?” As one expert who’d been doing landfill-based power generation projects since 2005 explained to me, “Landfills are never in the right place. In many cases, negotiating with the grid owner is complex and bureaucratic. And, even if you can do it, often the grid needs a major substation upgrade to be able to take that power. It ends up being too expensive.”
“But what if, rather than selling that power to the grid, you had someone who could use it on location, at the landfill?” I asked.
He shook his head.
“But who would want to do that?” he asked. “Landfills are smelly places, and the methane is a health hazard. No one would want to set up a business there.”
That was the point where two worlds suddenly collided for me. Several months earlier, I’d also been researching Bitcoin. Not because I thought it had any merits in terms of climate tech — in fact, I thought it was bad for the environment. It was simply a hobby. I like to get to the bottom of issues and understand the data behind them. Bitcoin was simply in that category.
I had environmentalist friends who told me that Bitcoin was bad for the environment. But I also had a friend in the Bitscoins.netmunity who told me that was nonsense based on people’s lack of understanding of Bitcoin mining.
The turning point came in late 2021 when I talked to Vlatko Materić, an environmentalist and the founder of one of our climate tech companies who challenged my assumptions about energy and Bitcoin, and encouraged me to dig deeper. I did, and quickly learned that he was right: Bitcoin’s location-agnostic features and high percentage of operating costs spent on electricity made it ideally suited to using stranded energy that no one else wanted or was able to access.
Listening to grid operators, bitcoin miners and renewable energy engineers was critical during this time. Had I relied on academic articles and journalism, I would have come away with some very different conclusions. When I did read the latter, by contrast, it became more and more apparent to me that they were critiquing a technology that they didn’t fully grasp. This lack of reliable data on Bitcoin’s environmental impact from the articles and studies I read led me to do my own studies.
Taking Climate Action With Bitcoin
So, skipping forward in time, when that landfill expert said that no one would want to locate at landfills, I said to myself, “I know someone who definitely would.”
It turned out that others had already thought of that, and that two Bitcoin mining companies were either already doing landfill-gas-powered bitcoin mining, or on the cusp of doing it (Nodal Power and Vespene Energy).
When I did the math on Bitcoin using vented methane gas, it was a eureka moment. A fund that financed the deployment of infrastructure into Bitcoin mining using landfill gas could mitigate more emissions than any financial instrument I’d seen. It was 65-times more emission reducing than solar installations.
To put the above chart into context, for someone living in the west, our calculations suggested that $108 could offset their emissions for the year. Less than $10,000 could offset their entire carbon footprint for a lifetime. We did some work to build a team, and come up with a business model that could return a steady yield to our wholesale investors, and that became the basis of the fund CH4 Capital.
I didn’t start off as a Bitcoin advocate, but I’ve become one. My conclusion: There’s probably never been a more important technology for our chances of mitigating runaway methane emissions, enabling the renewable transition and, as I found out along the way, giving financial sovereignty to more than 4 billion people.
For the first time ever, I feel there’s something I can do beyond my own carbon footprint that could make a difference to our emission levels. It’s a drop in the bucket, but it’s a start. And it’s a start that we would not have without Bitcoin.
That’s why I say: Bitcoin is environment action.
This is a visitor post by Daniel Batten. Opinions revealed are completely their own and do not always show those of BTC Inc or Bitcoin Magazine.
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