Why Did 200 Bitcoin Miners and Oil & Gas Execs Just Have a Secret Meeting in Houston?
Bitcoin has a well known problem, even if many bitcoin fans would like to ignore it or pretend it isn’t real. The problem is that bitcoin mining uses an enormous amount of electricity. It’s not a large amount, and actually maybe it’s not even an enormous amount — it’s an absurd amount.
Naturally, people who like the concept are eager to brush it off by saying that bitcoin miners can just use renewable energy — solar and wind are cheapest now anyway for new power production, right? However, that misses a few points. There’s only so much solar PV and wind turbine production capacity, and increasing production capacity takes years, and needs clear signals. Production needs to increase rapidly and it has been increasing rapidly, but that increased production is needed to avoid or turn off fossil fuel power plants. Every single serious plan for reducing emissions an adequate amount by 2030 involves cutting energy use — cutting it a lot. We need to retire coal and fossil methane* power plants yesterday (*aka “natural gas,” but we’re starting to drop the use of this term here on CleanTechnica since it’s a greenwashing term). We need new solar and wind power plants to come online to do that. Even if bitcoin miners started gobbling up solar panels and wind turbines to power their mining, that would mean those cleantech power plants would be less available for other markets and those other markets would be powered by fossil fuels longer.
Sure, in 2050, go for it if you want! Go crypto crazy. But we need to shut down hundreds of fossil power plants in the 2020s, and we can’t be delaying that just because some people don’t want to trust the federal governments and organizations that manage monetary policy today.
But let’s get back to the story. It’s a fascinating one.
With their massive, massive energy needs**, bitcoin miners have been known to use enormous amounts of coal power, particularly in China (**and no, this is nothing like the energy needs of ATMs — which I don’t think I’ve used in ~10 years — or online banking; it is far more energy use on a per-transaction basis). As the bitcoin market grows, it needs to find more and more power around the world, and that means more and more dirty power. That brings us to the news. Recently, 200 bitcoin miners and oil & gas execs reportedly met in a private setting in Houston, Texas. CleanTechnica wasn’t invited, so we can’t say for sure if this was about getting more power supply for mining, if it was about investment opportunities of some sort, if it was about money-hiding tactics to avoid paying taxes, or if it was just a benevolent meeting to chat sports, weather, and pumpkin spice lattes. However, reporting from CNBC indicates it was primarily about the first thing — getting dirty electricity to power more bitcoin mining.
“On a residential back street of Houston, in a 150,000 square-foot warehouse safeguarding high-end vintage cars, 200 oil and gas execs and bitcoin miners mingled, drank beer, and talked shop on a recent Wednesday night in August,” CNBC reported last week. “One big topic of discussion: Using ‘stranded’ natural gas to power bitcoin mining rigs, which both reduces greenhouse gas emissions and makes money for the gas providers, as well as the miners.”
Let’s pick apart that last sentence, because it’s the critical one and the second half of it makes no sense. “Stranded assets” in this context are not power plants that are no longer competitive (though, some of them have been revived or kept alive to power bitcoin mining). Bitcoin mining is bringing economic viability back to a dying fossil-power-plant market in another way. What is being tapped, according to the article, is otherwise unused fossil methane at oil sites. Notably, using that “stranded methane” is making oil drilling more economical, and making it easier to keep selling deceptively cheap oil. There is nothing good about this. And that’s not the end of the environmental disaster. The way this stranded methane is being burned is also extremely inefficient and harmful for our climate.
Bitcoin isn’t a joke. It’s a massive, insane climate disaster.
Here are a few more choice quotes from the CNBC story:
Just take Hayden Griffin Haby III, an oilman turned bitcoiner. The Texas native and father of three has spent 14 years in oil and gas, and he epitomizes what this monthly meetup is all about.
Haby started as a surface landman where he brokered land contracts, and later, ran his own oil company. But for the last nine months, he’s exclusively been in the business of mining bitcoin. … [H]e co-founded Limpia Creek Technologies, which powers bitcoin mining rigs with flared, vented, and stranded natural gas assets.
Bitcoin miners care most about finding cheap sources of electricity, so Texas – with its crypto-friendly politicians, deregulated power grid, and crucially, abundance of inexpensive power sources – is a virtually perfect fit. The union becomes even more harmonious when miners connect their rigs to otherwise stranded energy, like natural gas going to waste on oil fields across Texas.
“I just knew Houston would be prime to explode because of the energy connection to mining – if we organized a good meetup,” [Parker] Lewis told CNBC. “It’s also key to Texas being the bitcoin capital of the world.”
Capturing excess and otherwise wasted natural gas from drilling sites and then using that energy to mine bitcoin is still firmly in the category of avant-garde tech.
The article noted that this meeting and the bitcoin miner rush to Texas were triggered in large part by China kicking bitcoin miners out. As noted previously, bitcoin miners have been using an enormous amount of coal power, mostly in China. The plan for many of them now seems clear: forget about Chinese coal, just switch to cheap fossil fuel power in Texas.
Anyone who thinks bitcoin isn’t an environmental and climate catastrophe isn’t paying attention or is putting on some seriously handicapping blinders. Switching to such an enormously energy intensive investment tool (because, come on, no one is spending bitcoin like it’s cash money) is not just a mistake. It’s essentially a crime against humanity. Human society is digging the graves of millions or billions of people because of catchphrases and fanciful idealistic thinking. No cryptocurrency is going to wipe out wealth inequality or solve the world’s problems. All I’m seeing so far is that it’s creating bigger problems. (Side note: the cult-like obsession with crypto is also a bit annoying on social media and various forums around the interwebs, and there is no doubt a ridiculous amount of bot activity and propaganda pumping.)
Oh, and I haven’t even gotten to what seems to be the worst part yet. The way that much of this fossil methane is being burned is about as inefficient as it gets. The “miners” are using generators. Here’s more:
“Chemistry is amazing,” explained Adam Ortolf, who heads up business development in the U.S. for Upstream Data, a company that manufactures and supplies portable mining solutions for oil and gas facilities.
“When CH4, or methane, combusts, the only exhaust is CO2 and H2O vapor. That’s literally the same thing that comes out of my mouth when I exhale,” continued Ortolf.
But Ortolf points out, flares are only 75 to 90% efficient. “Even with a flare, some of the methane is being vented without being combusted,” he said.
This is when on-site bitcoin mining can prove to be especially impactful.
When the methane is run into an engine or generator, 100% of the methane is combusted and none of it leaks or vents into the air, according to Ortolf.
“But nobody will run it through a generator unless they can make money, because generators cost money to acquire and maintain,” he said. “So unless it’s economically sustainable, producers won’t internally combust the gas.”
…
“This is the best gift the oil and gas industry could’ve gotten,” said Ortolf. “They were leaving a lot of hydrocarbons on the table, but now, they’re no longer limited by geography to sell energy.”
Somehow, the CNBC article tries to spin this as a good thing environmentally. I guess the reporter doesn’t know anything about the matter and just bought the bitcoin miners/oil & gas guys’ illogical talking points. Perhaps they even now think that the wonderful CO2 emissions we are flooding our atmosphere with will just lead to more trees and bushes.
Featured photo courtesy of Pixabay/Pexels (CC0)
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
Isuzu is excited to announce the development of all-new, zero-emission Isuzu class 6 & 7 F series trucks utilizing an Accelera by Cummins battery-electric powertrain for both the US and Canada. They’re so excited, in fact, that they’re announcing it two years ahead of time!
I don’t want to be too hard on Isuzu here. They have a long history of building bulletproof diesel engines and solid, dependable trucks that are so easy to drive that even novices can confidently wheel the (relatively) compact cabovers around tight urban cityscapes. Besides, it will basically look like a 2024 F series, above, but be electric.
That said, “Pictures of the truck will come at a later date. Any questions, please let me know,” makes it tough to share in Isuzu’s excitement. The official press release is short on specs, too, so while we know that the upcoming electric F series will be bowered by Accelera’s “next generation” lithium iron phosphate (LFP) battery technology, we don’t have any information about battery size, power, or expected range.
We do, however, have quotes – and I’ve included both of them for you. First this one …
With the start of production of our Isuzu class 5 N-Series EV coming this summer and with the future addition of the Isuzu battery electric class 6 & 7 truck, we will be able to provide zero emission solutions across our product line-up. This will also improve the breadth of our overall offerings providing customers the ability to choose the product and propulsion system that best fits their needs.
Shaun Skinner; Executive Officer, Isuzu Motors Limited
… and then this one ….
Partnership and collaboration is critical to supporting customers through the energy transition. Together with Isuzu, and our joint commitment to innovation, we will provide customers with safe, reliable zero-emissions solutions.
Amy Davis; President, Accelera by Cummins
… once that “later date” rolls around and we get some pictures and specs, we’ll let you know. In the meantime, Isuzu says it plans to have the new electric version of its F series truck available for customers by 2026. No pricing was given in the press release.
Elektrek’s Jo’s Take
2026, you might notice, is still two years away. I would think that’s more than enough time to put together some specs and a rendering or two.
At the very least, however, it seems like someone at Isuzu is getting on board with medium-duty EVs – and the collaboration with Cummins (once considered an arch-rival level competitor to the “Duramax” branded Isuzu diesels that appeared in GM’s pickups throughout the late 90s and early 00s) seems to imply that the company is open to exploring new ways to stay relevant in the rapidly changing commercial truck space. All of that feels like extremely positive news, but that’s just my opinion, what’s yours?
Scroll on down to the comments and let us know whether you think the Cummins/Isuzu collaboration is newsworthy on its own, or if we really could have held out for some more information.
SOURCE: ISUZU.
UPDATE: per an email received at 9:26AM CST 14MAY2024, I can expect to receive pictures of the truck, “later this year.” (Really.)
FTC: We use income earning auto affiliate links. More.
According to credit card data, only about 2% of the Tesla owners who used Full Self-Driving in the free month trial ended up buying it after.
Starting in March, Tesla offered a month of free trial of its Full Self-Driving (FSD) package to all its owners in North America.
At the same time, the automaker slashed the cost of the package from $12,000 to $8,000 or $99 per month for the subscription model. Interestingly, that goes against what Elon Musk said. The CEO previously said that Tesla would keep increasing the price of the FSD package as it gets better.
Yet, Tesla slashed the price just as it released the new v12 version of the system, which is a significant step forward.
The automaker tried to increase the take rate of FSD with the new version by making more people try it with the free trial, and then tempting them to buy or subscribe to it with the price reduction.
However, some data indicates that Tesla wasn’t really successful with the strategy.
YipitData accessed credit card data from about 3,500 Tesla owners who participated in the trial and found that only 50 bought or subscribed to FSD after the trial (via moomoo):
According to YipitData’s latest figures, nearly 3,500 Tesla owners trialed the company’s Full Self-Driving (FSD) service over the past month. However, only about 50 of these trials converted into FSD subscriptions or purchases, translating to a conversion rate of just under 2% as of May 5th. The data reveals a cautious approach among Tesla drivers towards paying for subscriptions to its autonomous driving technology.
In order to improve the take rate, Elon Musk also asked Tesla employees who deliver cars to give a FSD demonstration with every delivery.
Electrek’s Take
3,500 owners is a limited dataset, but it’s the best we have right now and to be honest, 2% sounds about right to me.
Despite the recent price cut, it’s still a very expensive product and the value is not clear to most people.
As I previously stated, I’ve been impressed by v12, but it doesn’t necessarily make it useful. v12 limits the speed in many areas and still makes mistakes. I think that it has value on the highway by reducing your workload and allowing you to focus more on the road, but on city streets, it is more stressful than driving without it.
Therefore, I think most people see themselves better off with Autopilot for now.
Tesla still has some work to do prove itself with FSD and increase that take-rate.
FTC: We use income earning auto affiliate links. More.
Environment
Stellantis, Leapmotor officially launch joint venture to sell Chinese EVs in Europe this fall
One week after reporting plans for a press event launching its new joint venture, Stellantis and Leapmotor have officially begun the new business venture together. The new JV, named “Leapmotor International,” will expand to sell Chinese EVs in Europe this fall, with additional markets to follow.
Today’s event is merely a confirmation of a launch we’ve been expecting for quite some time. Last fall, European automotive conglomerate Stellantis ($STLA) took a $1.6 billion stake in Chinese OEM Leapmotor.
In addition to gaining a 20% stake in Leapmotor, Stellantis’ investment also included forming a new joint venture in which Stellantis owns a 51% stake to sell the Chinese brand’s EVs in other markets. Europe had immediately been confirmed in the JV plans, but Stellantis CEO Carlos Tavares wouldn’t rule out the US as another possible option.
This past March, the new partners announced their joint venture had been approved after Stellantis gained regulatory approval in China to continue its stake.
Last week, we followed reports that CEOs from both Leapmotor and Stellantis were preparing a press event to officially launch the Leapmotor International joint venture and divulge more specific plans for where the latter will sell the former’s Chinese-made EVs around Europe. We now have our answer.
Leapmotor Intl. to bring Chinese EVs to Europe and beyond
Per a release from Stellantis today, Leapmotor International is officially open for business following a press conference in China attended by Carlos Tavares and Jiangming Zhu, the respective CEOs. The companies shared intentions to scale quickly to bolster the value of each brand internationally.
The joint venture is headquartered in Amsterdam, Netherlands, and led by former Stellantis China executive Tianshu Xin as CEO. Carlos Tavares shared his thoughts on the joint venture and the potential Chinese EVs from Leapmotor hold in markets throughout Europe:
The creation of Leapmotor International is a great step forward in helping address the urgent global warming issue with state-of-the-art BEV models that will compete with existing Chinese brands in key markets around the world. Leveraging our existing global presence, we will soon be able to offer our customers price competitive and tech-centric electric vehicles that will exceed their expectations. Under Tianshu Xin’s leadership, they have built a compelling worldwide commercial and industrial strategy to quickly ramp-up the sales distribution channels to support Leapmotor’s robust growth and create value for both partners.
The joint venture is already laying the groundwork in Europe to bring Leapmotor’s Chinese EVs to new markets, starting with the family-friendly C10 and the T03 compact urban commuter (both pictured above).
Stellantis said it will wield its existing sales channels in Europe to launch and distribute the Chinese EVs as early as September 2024, targeting these markets first: Belgium, France, Germany, Greece, Italy, the Netherlands, Portugal, Spain, and Romania. Stellantis expects to have at least 200 points of sale throughout these markets by year’s end and over 500 by 2026.
In addition to Europe, Stellantis shared plans also to begin selling Leapmotor’s Chinese EVs in other regions before the end of the year as well:
- The Middle East & Africa
- Turkey, Israel ,and French Overseas
- India & Asia Pacific
- Australia, New Zealand, Thailand, Malaysia, and India
- South America
- Brazil and Chile
FTC: We use income earning auto affiliate links. More.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Environment12 months agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports1 month agoStory injured on diving stop, exits Red Sox game
-
Sports7 months agoGame 1 of WS least-watched in recorded history
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment1 year agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Environment1 year agoTesla advances Powerwall pilot project with German electric company