Bitcoin Mining Shifts 52% to Renewable Energy, 38.2% to Natural Gas

Bitcoin mining has seen a significant shift towards sustainable energy sources, according to a recent study by Cambridge University. The findings reveal that over 52% of the energy used in Bitcoin mining is now derived from renewable or low-carbon sources, a notable increase from the 37.6% reported in 2022. This trend underscores the industry's growing commitment to sustainability.

The report, published by the Cambridge Centre for Alternative Finance, details that 42.6% of this sustainable energy comes from renewable sources such as wind and hydropower, while 9.8% is sourced from nuclear energy. This transition is particularly evident in North America, where the United States leads with 75.4% of the activity, followed by Canada with 7.1%. The region's dominance is attributed to its abundant and relatively cheap electricity, as well as strong capital markets that support mining operations.

Natural gas has overtaken coal as the largest energy contributor to Bitcoin mining, with its usage rising to 38.2% compared to 25% in 2022. Conversely, coal's share has fallen sharply to 8.9% from 36.6%. This shift is likely driven by the increasing availability and cost-effectiveness of natural gas, as well as growing environmental concerns surrounding coal usage.

The study is based on a survey of 49 mining companies operating in 23 countries, representing about 48% of the Bitcoin network’s total hashrate. Participating firms included Bitfarms, CleanSpark, Hut 8, IREN, MARA, and Riot. The study estimates Bitcoin’s total electricity consumption at 138 TWh annually, roughly 0.5% of global energy usage, and calculates carbon emissions at 39.8 megatonnes, with a 24% year-over-year improvement in hardware efficiency.

Beyond energy sourcing, the report also found that miners are taking steps toward sustainability. About 86.9% of decommissioned mining hardware is either resold, repurposed, or recycled, with Bitcoin mining producing around 2.3 kilotonnes of electronic waste in 2024. Additionally, Bitcoin miners contributed to grid stability by curtailing 888 GWh of electrical load in 2023 to assist during peak demand periods.

The Cambridge Centre for Alternative Finance acknowledged that further research is needed into areas like methane mitigation, heat reuse, and broader social impacts such as employment effects. “By offering data from nearly half the global mining network, we aim to ground policy discussions in transparent evidence,” said Alexander Neumueller, Research Lead at CCAF.

The report comes as Bitcoin mining’s environmental impact remains a hotly debated topic. A recent study claimed that U.S. Bitcoin mining worsened air pollution, but it has faced criticism from energy experts who argue it relied on flawed methodologies and outdated data. The United States became a global leader in Bitcoin mining following China’s 2021 crackdown on the crypto industry. With cheap electricity and strong capital markets, American mining firms quickly gained dominance. However, recent developments, such as steep tariffs on imported mining equipment from Southeast Asia, are casting a shadow over that momentum.