Could hemp solve bitcoin’s energy consumption problem?

Home » Could hemp solve bitcoin’s energy consumption problem?

A new collaboration between a crypto firm and the largest US hemp supplier is seeking to create sustainable mining facilities that will double up as hemp drying facilities.

With the increasing adoption of Bitcoin into the mainstream economy – mining has been growing exponentially. Whilst the exact energy usage of Bitcoin mining is difficult to know, it can be fairly estimated, and it is generally understood that the activity uses a fair amount of energy. Its carbon footprint, however, is not as easy to guess at.

Currently, mining machines use a mix of high- and low-carbon sources. Many enthusiasts of the disruptive Bitcoin are touting the potential of its mining to accelerate the clean energy transition.

In April 2021, The Bitcoin Clean Energy Initiative published a white paper sharing its vision on how mining is “especially well suited to accelerate the energy transition” by pushing further adoption of renewable energy sources.

The hemp industry has been rising in parallel with cryptocurrencies and blockchain. The material is being hailed as clean alternative for a number of different products and industries – from using hemp as a biofuel, to replacing harmful plastics, fabrics and building materials, to being extremely efficient at carbon sequestration. 

Innovation begets innovation, and in a move that has been described by US policymakers as “the most innovative idea we have ever heard”, Generation Hemp is teaming up with Crypt Solutions to build green energy plants and Bitcoin mining complexes. The facilities will utilise hemp feedstock as a fuel source to power mining equipment.

Read more: Italy plans hemp production increases – could the UK be next?

Speaking to Cananbis Wealth, Generation Hemp chairman and CEO, Gary C. Evans, commented: “During a recent conversation with certain political insiders who learned of our new expanded business plan of utilising hemp to fuel a biomass operation that would generate green energy for the electrical needs of bitcoin, they commented, “this may be the most innovative idea we have ever heard!”

“It’s progress fuelling progress.

“The hemp space has been an exciting new arena that we are helping to develop. With so many applications for hemp, you really have to focus on where you can make the biggest impact with your skills and experience. 

“Having been involved in the fossil fuels energy business for over 35 years and previously having owned and operated several biomass plants located in the southeast US, this opportunity was a natural fit. 

“The bitcoin and cryptocurrency space began developing along a similar timeline as hemp, and is equally exciting. Yet it has one major thorn in its side – a voracious appetite for electricity consumption. Utilising renewable energy sources like hemp to offset the consumption of energy sourced from fossil fuels is almost an imperative for something that is as progressive as Bitcoin. 

“When we saw this opportunity to join these two forces, the synergy was immediately apparent.”

A sustainable energy source for bitcoin mining

The two parties have already begun assemble the necessary pieces of a “Green Energy” plant to create an independent power source for mining where hemp will be used for Btu generation.

Utilising hemp feedstock for fuel as a renewable energy source the pair have stated that all steps will be taken to register the current facility in development for Renewable Energy Credits (RECs). 

Contributing renewable energy to the overall electrical grid will help electric power suppliers stay in compliance with state initiatives that require a certain percentage of their electricity to come from renewable energy. This will help foster and develop the infrastructure and implementation of renewable energy. 

Read more: Could hemp be the answer to UK energy crisis?

Chief Operating Officer of Crypt Solutions, Patty Stefanelli, commented: “As an early mover in the cryptocurrency space, we have witnessed and have been a vital part of the innovation and evolution of the mining sector happening at a remarkable pace. 

“Our vantage point has also made us very aware of what barriers may be ahead and how to ensure agility where necessary. The energy demands for mining will only increase, and we fully recognise the need for sustainable solutions in order for the adoption of Bitcoin to continue to grow. 

“We are eager to be part of finding solutions, and we believe building a “Green Energy” power plant, fuelled by an environmentally sustainable material like hemp, is the perfect opportunity.”

They also highlight that RECs have the potential to become a valuable asset of the project, as RECs can be sold in the marketplace to companies in need of credits for their respective businesses.

Founder and CEO of Crypt Solutions, Joseph Stefanelli, stated: “When you look at a revolutionary technology like Bitcoin, that challenges the fundamental institutions that have built society as we know it, relying on similar institutions like conventional utilities is a contradiction to the decentralised and permissionless nature of Bitcoin and all that makes it revolutionary. 

“We believe that building independent, environmentally sustainable and dedicated power plants will become an essential part of the Bitcoin ecosystem. 

“Through our relationship with Generation Hemp, we have found a “Green Energy” source that will facilitate the independence we need in cryptocurrency, mitigating a reliance on the grid and energy sources that are not environmentally sustainable.”

Doubling up as a hemp drying facility

The mutually beneficial partnership will see Generation Hemp, a Dallas/Fort Worth-based hemp company incorporating its second hemp drying and processing facility to utilise the heat output from the mining activity.

Evans, stated: “We continue to see an incredible reception of hemp across many different industries. 

Read more: Could hemp be the answer to water pollution?

“As businesses recognise the ability of hemp to replace current materials in a sustainable way and farmers begin to see industries’ adoption of hemp to create a reliable market of products to support dedicated hemp acreage, past methods that deplete resources to sustain become just that – a thing of the past. 

“Take that a step further with a look at cryptocurrency. This is an industry that will soon touch every other industry and already is hungrily devouring energy sources just to function. Collaborating to power mining using environmentally sustainable hemp with an organisation that we have an established relationship with and is a long-standing, integral player in cryptocurrency, makes perfect sense to all involved. 

“It’s elegant, responsible, and efficient.”

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