An integrated landfill-gas-to-energy and Bitcoin mining model

Abstract

This study introduces a novel model assessing the integration of bitcoin mining with a landfill gas to energy (LFGTE) project for methane mitigation. By utilizing a Monte Carlo simulation, we explore the economic viability of coupling bitcoin mining's financial incentives with methane capture at landfill sites. Our findings reveal that lower electricity costs and Bitcoin hashprice fluctuations significantly impact the financial outcomes of such integrations, underscoring the potential of bitcoin mining to serve as a sustainable economic model for methane mitigation. The study demonstrates that modern, energy-efficient mining rigs can substantially enhance profitability and act as a buffer against financial losses, highlighting the importance of technological advancements and efficient energy use in maximizing the integration's benefits. Furthermore, we estimate a 1.14 MW facility could mitigate 2,187 mt CH4, valued at $7.6-million, offering significant CO2e reductions from previously undeveloped landfills. The scalability of this approach suggests transformative possibilities for global methane mitigation initiatives, extending beyond landfills to sectors like agriculture, food processing, wastewater treatment, and energy. By providing a flexible framework for evaluating various scenarios, this research contributes to the broader discourse on sustainable energy and the Bitcoin network, proposing a novel, market-driven strategy to help mitigate methane emissions and improve environmental sustainability.

Keywords: Bitcoin, bitcoin mining, electricity generation, LFGTE, landfill economics, landfill gas, methane

JEL Classification: Q42, Q52, Q55