Sustainable Bitcoin Protocol starts pilot with Crusoe Energy
The Sustainable Bitcoin Protocol (SBP) is trialling a system to determine the environmental impact of using waste gas to power bitcoin mining operations. Using a third-party audit, SBP will verify Crusoe Energy’s procurement and technology measurements to ensure that emissions are reduced and contribute to a global clean energy strategy. Crusoe Energy, and other crypto-miners, work alongside oil and natural gas producers; flaring excess gas causes the release of carbon dioxide and methane into the atmosphere, but efforts by Crusoe Energy capture these emissions, utilise them in its systems, and transforms fugitive waste into productive clean energy.
SBP aims to attract bitcoin miners to become more sustainable by rewarding them with Sustainable Bitcoin Certificates (SBCs) dubbed ESG claims, once their operations meet the standards. Crusoe Energy is a crypto miner assisting mining operations with producing flared full life-cycle of natural gas by making it financially retrievable via compounding electrical grid applications. Market-based incentive mechanism encourages them to accommodate variations of inherent producer diversity while incorporating financial reuse choices offered by Crusoe Energy.
SBCs will not represent a specific bitcoin generated by sustainable practices, but will encapsulate owning an entire range of prosperous measures originating from the protocol. SBP aims to safeguard that capturing waste gas is done so that this type of space, where avoiding methane dependence becomes demonstratable. Investors purchase these certificates, and one will be issued for each bitcoin that was mined sustainably, then they gain exposure to Bitcoin with the invested funds in line with their principles around environmental, social and governance (ESG) concerns. The first SBC transaction occurred when CleanSpark sold their SBCs to Melanion Capital.
SBP is conscious of the need to manage the transition from resource sources, planning to screen and segment gas flaring locations while elevating alternative energy management in the companies SBP works with.
[h/t Eliza Gkritsi]