More than half (52.4%) of the energy used to mine Bitcoin in 2024 was from sustainable sources, with hydropower, wind, and nuclear energy making up the bulk of this share, a new report by Cambridge University has found.
According to the Cambridge Digital Mining Industry Report, which was published by the Cambridge Centre for Alternative Finance (CCAF) at Cambridge Judge Business School, natural gas remains the single largest energy source used to mine Bitcoin, at 38.2% of the total.
Hydropower constitutes the largest sustainable source (23.4%), followed by wind (15.4%), nuclear (9.8%), solar (3.2%), and other renewables (0.5%).
‘Drawing on primary data from digital mining firms that collectively represented nearly half the computational power supplied to the Bitcoin network, this report offers timely and granular insights into the ecosystem,’ the report notes.
Bitcoin mining
In compiling its data, CCAF conducted a survey of 49 mining firms, 41% of which were publicly listed, including Bitfarms, CleanSpark, Hut 8, IREN, MARA and Riot. Together, these accounted for nearly half of the Bitcoin network’s computational power.
As of June 2024, annualised electricity consumption associable with Bitcoin mining was estimated at 138 TWh, representing a year-on-year increase of 17%, and accounting for approximately 0.54% of global electricity consumption.
Greenhouse gas emissions
The estimated annual greenhouse gas emissions associated with Bitcoin mining, meanwhile, are approximately 39.8 MtCO2e, representing about 0.08% of global annual emissions, the report noted, however a ‘more nuanced’ analysis suggests a potential range of 32.9 to 37.6 MtCO2e.
On a geographical basis, Bitcoin mining is heavily concentrated in North America, with the US alone accounting for 75.4%, followed by Canada with 7.1%. The report also notes emerging mining operations in South America, the Middle East, and Northern Europe.
Electricity remains the dominant operational expense for Bitcoin miners, making up more than 80% of costs, with respondents reporting a median electricity cost of $45 per megawatt-hour (MWh), with an all-in operational cost of $55.5/MWh.
‘Mining firms reported regulatory uncertainty and energy prices as their primary concerns, and cited business and geographical diversification as key risk management strategies; lack of deployment opportunities and logistical challenges were identified as the primary factors impeding their growth,’ the report added. Read more here.
