The Texas House and Senate have passed Bill 591, allowing bitcoin miners to use flared gas to power mining operations. The bill is set to lead to a reduction in carbon emissions, helping the Bitcoin network move toward net zero. The move contradicts earlier efforts in Texas to hamstring bitcoin miners by removing their tax incentives, demonstrating renewed enthusiasm for the world’s leading digital currency.
Texas Reasserts Love of Bitcoin
Texas has reestablished itself as the most Bitcoin-friendly state in America after the House and Senate passed a bill allowing bitcoin miners to use otherwise wasted natural gas to power bitcoin mining.
The World Bank estimates that 140 billion cubic meters of methane gas is flared every year as a waste product. If all this were harnessed worldwide, it could generate enough energy to power the Bitcoin network several times over.
While bitcoin miners were always free to utilize this energy source, and some have been doing so, this bill has ratified tax exemptions associated with the gas recycling process.
The move has been hailed as a brilliant move on three counts.
Firstly, the tax exemptions mean that energy producers that generate natural gas as a waste product can now charge less for the electricity they generate or the oil they produce.
This means cheaper energy for their customers, passing the savings onto others.
Secondly, it encourages bitcoin miners to set up near these sources of natural gas, using an otherwise wasted resource and providing more profits to the energy providers, who can then pass further savings onto their customers.
Thirdly, using this gas to power bitcoin mining results in a net decrease in emissions of carbon dioxide equivalents (“CO2e”). This is because the flared gas is generally methane, which is 100 times more potent as a greenhouse gas than carbon dioxide in the short term.
The bill seems to contradict Bill 1751, yet to be passed into law, which would remove tax abatements for bitcoin miners in Texas.
Clearly, Texan Bitcoin advocates are keen to fight back and maintain their leadership position as the pro-Bitcoin state of America.
How Does This Affect Bitcoin’s Environmental Impact?
Signatories of the Crypto Climate Accords are hoping to bring the Bitcoin network to net zero in terms of carbon emissions by 2030.
The Bitcoin Mining Council currently estimates that the network uses around 60% sustainable energy, far higher than the U.S. national grid’s 20%.
Overall, bitcoin mining has been found to be far more beneficial to environmental initiatives than is usually reported.
This bill will only go further in showing the world how useful the Bitcoin network can be in achieving net zero globally.
Estimates currently suggest that Bill 591 will lead to a 63% reduction in carbon emissions — a dramatic reduction of Bitcoin’s energy footprint.
