How to solve the Bitcoin energy consumption problem

As the world grapples with crypto mining’s carbon footprint, Nischal Shetty of WazirX examines the technical and regulatory solutions.

Blockchain technology is redesigning the world order via its interlinked network of blocks, simplifying monetary transfers and transforming the financial space. 

But its pros may be weighed down by the huge environmental cost that cryptocurrency mining incurs each year. Currently, Bitcoin mining alone is responsible for more than 0.5% of global energy consumption. 

Bill Gates, in early March, criticized Bitcoin for being the most energy-consuming transaction method known ever to mankind. Since then the Twitterati have been abuzz about how cryptocurrency mining has been hogging down energy from the already limited available resources. Down from their reputation of being a panacea for every malady, Bitcoin and its accompanying blockchain technology are earning notoriety as NFTs (non-fungible tokens) powered by blockchain are steadily gaining traction in the digital scene. 

Recently, an NFT artwork by the digital artist Beeple was sold for US$69 million by Christie’s auction house as an NFT. Around the same time, French sculptor cum environmentalist Joanie Lemercier was horrified to learn that the sale of just six of his NFT artworks consumed energy equivalent to a total of two-year energy consumption of his studio.    

Excessive energy consumption: hype or problem area?

Cryptocurrencies are created — or mined, in blockchain terminology — over a decentralized network of computers that validates payments between users and maintains a historical log of transactions. Almost all the cryptocurrencies use a proof-of-work consensus mechanism that requires the miners to solve difficult computational problems, thus consuming a lot of electricity. There are hundreds of thousands of such computers that mine such cryptocurrencies actively, and only 39% of them use renewable energy resources, according to a University of Cambridge report.   

The environmental cost of the digital revolution far supersedes the current stats that convict Bitcoin and blockchain as the sole culprits of degrading environment. A single swipe of your debit card initiates a rally of transactions over a humongous but buried network of systems. Though the frequency of transactions in banks and financial institutions (500 billion per year)  is incomparable to that of the Bitcoin network (100 million), cryptocurrency mining isn’t inherently prone to leave a carbon footprint. 

We ought to know how climate change is a huge environmental issue being realized today by businesses and the masses alike. A 2019 study by Harvard Business Review found that the market for sustainable products was touted to grow 5.6 times faster than the other not such responsible products. Another study found 79% of the customers preferring socially and environmentally responsible products. With changing customer preference towards environment-friendly products, the crypto industry has to work towards more sustainable energy solutions as it nears mainstream adoption. Let us look at the solutions available to tame the cryptocurrency industry’s carbon footprint and excessive energy consumption.

Solutions within and without

Changing the way coins are mined

The proof-of-work consensus mechanism is averse to saving energy due to its insatiable and unending consumption issues. It is, therefore, pertinent to change the way coins are mined. Easier said than done. Attempts have been made to bring in more energy-efficient consensus mechanisms, like the proof of stake and proof of authority. 

Proof of stake is a low-energy consuming consensus mechanism as it leverages the efficacy of coins itself in the network. A user who has locked his tokens can verify blocks; therefore, the need for intensive mining is eliminated. Ethereum founder Vitalik Buterin strongly believes that blockchains sharding based on proof-of-stake is “thousands of times more efficient.” 

 A group of hackers created an eco-friendly network based on the same called the PIVX network. The network’s energy requirements can be sufficed by a single wind turbine alone! 

A proof-of-authority consensus mechanism leverages the identity of the people being a reputation-based consensus system. It is one of the most efficient and eco-friendly consensuses that could replace the proof of work. 

Finding alternative energy sources

Bitcoin mining currently consumes 69.85 TWh per year, which ismore than the energy consumed by Austria in a year. There is an urgent need to shift to alternative resources to cut on the carbon footprint. The shift to environmentally fit energy solutions is already visible. Some mining nodes now use hydropower Some mining businesses rely on gas leaks captured from oil fields. Others are increasingly exploring solar-powered machines to fuel their mining operations.     

Countries that have a surplus of renewable energy sources can encourage miners by allowing subsidized rates and other such allowances. Companies can work on a more efficient and robust mining and grid infrastructure that can help miners store and channel energy flows.  

Reducing crypto mining’s carbon footprint

Exploring the uses cases of blockchain further, Canadian business consultant, Magdalena Gronowska says: “Miners can provide grid balancing and flexible demand-response services and improve renewables integration.” Miners can support the community rather than draining it. The mining firms can take up reforestation programs and other sequestration programs to help improve the air quality. 

Mining rigs can utilize the heat from their units to warm houses in cold temperatures. Hotmine in Siberia is a fine example of the above application. Places like Iceland offer natural cooling to the Bitcoin mining rigs and also harvest hydropower and geothermal energy that further help make Bitcoin mining more green and clean.    

Environmental regulations

Government and policymakers around the world can put into force regulators and categorical bans for cryptocurrencies that flout the prescribed limits of CO2 emissions. For instance, Quebec has introduced a moratorium on new currency mining. The crypto industry, like other industries, could be brought within the ambit of corporate social responsibility (CSR) regulations that are becoming increasingly mandatory for business enterprises today. 

Development and environment protection have and will always be at loggerheads. What is essential is to find the middle path. Making mining more energy-efficient and switching to alternate modes of energy can go a long way in making it a carbon-neutral technology. 

What is required to be told and understood is that Blockchain tech has been testing its limits ever since its inception. The crypto community is self-aware and thinking about how to tackle the energy consumption issue. Being a disruptor tech still in its nascent phase, it possesses the potential to rethink, revise and rework on its shortcomings. As the DigiEconomist founder Alex de Vries says, “Ideally, change comes from within.” The alternative currency and tech are sure to find an alternate solution soon. 

AUTHOR PROFILE

NISCHAL SHETTY

Nischal Shetty is the CEO of Indian crypto exchange WazirX. He also founded Crowdfire, a marketing bot for content creators. He holds a bachelor of engineering in computer science from Visvesvaraya Technological University and was named to Forbes India 30 under 30 in 2014.

A WHIFF OF BRE-X ABOUT THIS

A Single Company Could Bring 1 Million Bitcoin Mining Rigs From China to Canada

By Nathaniel Mott 

The great Bitcoin migration

(Image credit: Shutterstock)

A single China-based mining operation reportedly plans to move 1 million Bitcoin mining rigs to Canada over the next 24 months with the help of a U.S. company.

The partnership between Optimum Mining Host (OMH) and Black Rock Petroleum Company (BRPC) could offer a glimpse at the scale of the mining operations being forced to leave China because of the country's restrictions on cryptocurrencies. Or it could be a sign that companies want to cash in on the uncertainty of Bitcoin's future.

BRPC said it plans to "host and operate up to one million Bit miners" for OMH "across three Natural Gas producing sites located in Alberta Canada." The first 200,000 units are set to be hosted at the Quirk Creek plant near Millarville, Alberta, and it seems that BRPC and OMH would split the costs of maintaining the devices

It's worth noting that, at least in our searches, mentions of OMH begin and end with this announcement. BRPC's website also relies exclusively on stock imagery, and founder Zoltan Nagy is also said to be "President and Principal Controlling Executive Officer" as well as "Financial & Accounting Officer, Treasurer, Secretary, Director.

BRPC is also listed on OTC Markets, which has more lax requirements than the likes of the New York Stock Exchange or NASDAQ, under the BKRP ticker symbol. But if the announcement was meant to buoy the company's share price, it didn't work. That price fell from $3.04 on July 15 to $2.26 at the time of writing and was declining even before the rest of the market crashed because of the Delta variant of COVID-19.

Even without this deal, there are signs that China-based Bitcoin mining operations plan to move to the U.S. and Canada in pursuit of cheap energy, privacy protections, and the relative stability of their regulations for cryptocurrency mining. There are also reports of miners planning to move hundreds of thousands of mining rigs.

Companies planning to move up to a million systems used for Bitcoin mining wouldn't be outside the realm of possibility, then, even if it's hard to fathom multiple operations devoting that much hardware to the cryptocurrency. Whether or not BRPC will be the first company to facilitate that great migration remains to be seen.

Cryptocurrency & Mining

1 million Bitcoin mining rigs being moved from China to Canada

Optimum Mining Host is moving 1 million Bitcoin mining rigs from China to ALBERTA, Black Rock Petroleum Company will help out.

Anthony Garreffa@anthony256

PUBLISHED MON, JUL 19 2021 

It seems the gigantic crackdown on cryptocurrency mining operations in China is going to the next level, with Chinese Bitcoin mining outfit, Optimum Mining Host, moving 1 million Bitcoin mining rigs from China to Canada.

Moving 1 million anything from one place to another is a gigantic operation no matter what it is, which is why the company is getting Black Rock Petroleum Company to help out. Moving all of that hardware out of China is going to be hard -- for many reasons, not just a logistics reason -- with the 1 million rigs being moved out of China and into Alberta, Canada spread out across 3 locations.

The new Alberta, Canada relocation will have the 1 million Bitcoin mining rigs will be spread across three Natural Gas producing sites. The first 200,000 machines will be hosted by the Quirk Creek Gas plant which is operated by Caledonian Midstream Corporation.

The companies signed a 24-month contract, with an optional 12-month extension available if required. The initial deployment of 200,000 Bitcoin mining rigs will be joined by 300,000 "near term" machines and then mid-term 500,000 immediately available once their new home in Canada is ready.

Maybe they're not Bitcoin mining machines and maybe most of the hash power used for "cryptocurrency mining" is really feeding into a huge AI... and that AI wants to have itself moved from China to Canada. Hah ;)

1 Million Bitcoin Mining Systems Could Be Headed To Canada From China


By Alex Casas
Jul 19, 2021


Bitcoin, the father of cryptocurrencies

The Chinese Bitcoin mining firm, Optimum Mining Host, is reportedly moving 1 million Bitcoin mining rigs all the way to Canada over the next 24 months with the help of the Black Rock Petroleum Company.

1 Million Bitcoin Mining Rigs Will Be Moved To Canada In The Next 24 Months

With China cracking down on cryptocurrency mining operations, many operations have already been shut down and are looking elsewhere. The two main reasons behind China's move to ban cryptocurrency mining operations are two have a carbon-neutral footprint and the People's Bank of China wants to move away from the volatile cryptocurrencies. In an official statement, the People's Bank of China said that:

Virtual currency trading activities disrupt the normal economic and financial order, breed the risk of illegal and criminal activities such as illegal cross-border asset transfer and money laundering, and seriously infringe on the property safety of the people.

Mining operations in certain regions have already been shut down and graphics card prices in China have begun to drop. The partnership between Optimum Mining Host and Black Rock Petroleum Company shows the great scale of mining operations that were previously operating in China as well as the trouble companies are going to have to go through to move all of the equipment out of China.



In the statement, Black Rock and Optimum Ming Host describe how many mining rigs will be utilized as well as where they will be located. 1 million mining rigs will be located across 3 sites in Alberta, Canada.


Caledonian Mainstream (“Caledonian”) is an Alberta-based company and the owner/ operator of 14 producing liquids-rich natural gas wells at Quirk Creek, Caledonian will become a wholly owned subsidiary of Black Rock upon completion of the recently announced transaction and Black Rock will utilise the site to host and operate up to 200,000 of the one million bit miners with 300,000 mining machines at a second site in Alberta and 500,000 at a third site to be identified shortly as negotiations are concluded.

The statement doesn't specify how the cost of operating all the bitcoin mining rigs will be split, but it seems as if the two companies will be splitting the cost. The linked statement goes over the agreement in its entirety.

A miner inspects a setup in Sichuan, China in September, 2016. (Image Credits: Chinafile)

Tom's Hardware also noticed that the Black Rock Petroleum Company website is very basic only uses stock imagery. The founder Zoltan Nagy holds both the "President and Principal Controlling Executive Officer" position as well as the "Financial & Accounting Officer, Treasurer, Secretary, Director" position. Both executives on the about us section of the website also do not have headshots and opted for a stock image.

It is certainly plausible to move 1 million systems to Canada from China, but whether or not it actually happens is another question. We will just have to wait and see for 24 months if the 1 million mining rigs have arrived in Canada.

Black Rock Petroleum Company Announces Bitcoin Mining Agreement

July 15, 2021 11:53 ET | Source: Black Rock Petroleum

BLACK ROCK PETROLEUM ANNOUNES BITCOIN MINING AGREEMENT TO OPERATE UP TO ONE MILLION BITMINERS TO BE DEPLOYED ACROSS THREE NATURAL GAS ENERGY PRODUCING SITES IN ALBERTA CANADA.

Los Angeles Ca , July 15, 2021 (GLOBE NEWSWIRE) -- Black Rock Petroleum Company (OTC:BKRP), a Nevada corporation (“Black Rock”), announced today it has entered into a binding agreement with Optimum Mining Host Limited Liability Co to host and operate up to one million Bit miners to be relocated from locations in China and exported to Canada by(OMH) to be deployed by BKRP, across three Natural Gas producing sites located in Alberta Canada with the first 200,000 units to hosted on site of the recently announced Planned acquisition by BKRP, the Quirk Creek Gas plant operated by Caledonian Midstream Corporation.

The contract term is 24-month contract with an optional 12-month extensions with prior notice. OMH will pay the fully loaded electrical supply costs. OMH will maintain different electronic payment term in account of the fully loaded electrical costs, around 2 cents (USD) or $55.55 (USD) per miner per month as wholesale price. Payments can be made in US Dollar (USD) or Canadian Dollar (CDN). OMH will pay the host and maintenance services fee of 2.19 cents (USD) or $60.00 (USD) per miner per month. For equipment installation, service, firmware updates, maintenance, and repair, BKRP will charge an Administrative and Management fee of 1.83 Cents (USD) or $50.00 (USD) per miner per month. Maintenance and repairs are limited to swapping hash boards, fans, or miner configuration changes as the normal course of business. OMH will provide and maintain an expected inventory of spare parts for the number of miners installed and replenished based upon known failure rate. OMH will pay the fee of 0.36 cents (USD) or $10.00 (USD) per miner per month, for the allocation of the host services OHM required to have including: OMH Authorized Chinese speaking technicians, OHM Authorized English/Chinese speaking technicians, and OMH Authorized 24-7 hi-level Armed securities guard with enforcement power. OMH will pay BKRP all in price extra 0.18 cents or $5.00 (USD) per miner per month Any provided equipment that is found to cause damage to the electrical infrastructure at the facility will be disconnected and the companies will work together to resolve the issue. If faulty equipment cannot be remediated within 15-days than BKRP will remove it from the network and OMH has the right to provide replacement devices for the term of the contract. The initial contract commitment is for 200,000 machines to be scheduled for deployment, plus near term 300,000 machines and midterm 500,000 immediately contract commitment when the host capacity is ready.

Caledonian Mainstream (“Caledonian”) is an Alberta-based company and the owner/ operator of 14 producing liquids-rich natural gas wells at Quirk Creek, Caledonian will become a wholly owned subsidiary of Black Rock upon completion of the recently announced transaction and Black Rock will utilise the site to host and operate up to 200,000 of the one million bit miners with 300,000 mining machines at a second site in Alberta and 500,000 at a third site to be identified shortly as negotiations are concluded.

Raw production at Quirk Creek has recently averaged approximately 12 MMcf/d, with natural gas sales averaging approximately 8.5 MMcf/d, approximately 475 barrels of natural gas liquids and 60 tonnes of molten sulphur per day. Total remaining recoverable natural gas associated with the Quirk Field are estimated at 49 Bcf on a proved plus probable producing basis.

The Quirk Creek plant is connected to the Plains Midstream Pipeline by a company-owned, 34-mile pipeline capable of transporting natural gas to market in Fort Saskatchewan Alberta, as well as the TC Energy Gas Transmission Pipeline, with routing through Southern Alberta, the interior of British Columbia and the Western United States, terminating in the Sacramento/San Francisco.

Zoltan Nagy, Chief Executive Officer of Black Rock, commented on the recent announcement, with the company entering the Bitcoin Mining and Hosting business in Canada, it joins publicly traded companies in this space like Riot Blockchain,(RIOT) Marathon Digital (MARA) and Argo Blockchain (ARGO) and Genesis Digital Assets the worlds largest bitcoin miner as a serious competitor achieved via its agreement with OMH, to provide one million bitcoin mining machines and that “Caledonian Midstream is a great fit for Black Rock, and as demand for natural gas continues to grow, in Alberta and across North America, and the Quirk Creek property is perfectly situated to service those markets. Current production levels are good, and our engineers have looked at the property’s historical production records and analysed recent reserve evaluations, and we are confident we have the expertise, technology and resources to materially increase production and, in turn, the cash flow of the site and to host and operate bitcoin miners at an energy cost of circa three cents Canadian per KWH.

ABOUT BLACKROCK PETROLEUM

Black Rock Petroleum Company is expanding and diversifying its operations by the acquisition of Caledonian Midstream that owns and operates the Quirk Creek Gas Plant in Alberta Canada and by entering the very lucrative and cash generative Bitcoin and Crypto Mining Sector via its agreement with (OMH) to host and operate up to one million bit miners in Alberta Canada, in addition to its existing oil and gas exploration-stage company in California.

To learn more about Black Rock Petroleum, please visit the website

www.blackrockdrilling.com

Contact:
Zoltan Nagy, CEO
(778) 814-7729
Zoltan@starflick.com

Source: Black Rock Petroleum Co./ Torrance Petroleum Co.

Safe Harbour Statement: This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934; and is subject to the Safe Harbour created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and as such are by definition subject to risks and uncertainties.

ROARING 20'S SPECULATION

Russian Crypto Industry Scrambles to Attract Miners as Kazakhstan Overtakes Russia in Mining Volume

An industry association representing the Russian crypto sector has launched a project to entice bitcoin miners. Despite its abundant sources of cheap energy, Russia is now lagging behind Kazakhstan, another Eurasian Economic Union member, in terms of cryptocurrency production.

Russian Project Aims to Expand Country’s Crypto Mining Capacity

The Russian Association of Crypto Industry and Blockchain (Racib) has unveiled a project to bring a larger portion of the global computing potential engaged in cryptocurrency mining to Russia. The Russian Federation, Racib noted in an announcement, ranks among the top five nations by total electricity production. What’s more, the country’s energy system features unique characteristics that can benefit enterprises involved in the minting of digital coins.

Racib has listed a number of them, including the large surplus of power-generating capacity which reaches 50% in certain regions. The colder Russian climate is another advantage as it allows the cooling of mining equipment at little cost, thus improving the efficiency of data centers. Add to that the wide availability of traditional fuels and other energy resources, as well as the low population density in many areas that makes it possible to deploy large-scale facilities and infrastructure. Racib emphasizes:

All this … provides the best conditions for the formation of specialized clusters in the country to support the global cryptocurrency networks and the infrastructure of the global digital economy.

The crypto association says it will implement the project in close cooperation with central and regional Russian authorities and state-run corporations. Several working groups have been established already with the participation of the energy industry and public institutions. The organization claims its main foreign partner in the project is a “consortium of the largest mining companies in China.”

Amid an ongoing crackdown on crypto miners in the People’s Republic, Racib hopes some of them will transfer their computing power to the Russian Federation to increase Russia’s share of the global hashrate.

Kazakhstan Overtakes Russia as Crypto Mining Destination

Environmental concerns are believed to be a major motive behind Beijing’s squeeze on crypto mining and Racib thinks Russia has an answer. Eco-friendly hydro and nuclear energy sources form around 40% of the country’s energy balance. And as far as Bitcoin is concerned, Russia’s involvement in the miners’ migration from China should “provide a more decentralized network format of the main digital currency” and help “avoid another concentration of mining resources in one region, in this case North America.”

Chinese miners are already on the move, however, and Russia should hurry up if it wants to lure some of them to its territory. Others have been quicker to take advantage of the shift, including Kazakhstan, another former Soviet Republic, and a member of the Russia-led Eurasian Economic Union (EEU).

Evolution of country share in global hashrate (monthly average). Source: University of Cambridge.

In less than two years, the Central Asian country has increased its share in the global bitcoin extraction by almost six times, from 1.4% to 8.2%, according to a study conducted by the University of Cambridge. By crypto mining volume, Kazakhstan is now third in the world, the data quoted by RBC (a major Russian business news portal) shows, overtaking Russia which ranks fourth with 6.8%.

During the same period, between September 2019 and April of 2021, China’s share has dropped from 75.5% to 46%, while the United States has climbed to second place, increasing its share from 4.1% to 16.8%, the report details. According to the research, the Islamic Republic of Iran is now fifth with 4.6%. Still, Russia has a chance to improve its position as Kazakhstan recently introduced a surcharge for electricity consumed by miners despite opposition from the local crypto industry.

Watch Malaysian police use a steamroller to crush 1,069 bitcoin mining rigs worth $1.3 million

As the cryptocurrency market surged earlier this year, it brought into focus the massive energy consumption digital coin mining takes.

By Edited by Gadgets 360 Newsdesk | Updated: 20 July 2021 14:45 IST

Photo Credit: YouTube/ dayakdaily

HIGHLIGHTS

Malaysia police reportedly seized 1,069 mining rigs from miners

Cryptocurrency mining rigs need a huge amount of electricity to operate

Eight people were reportedly arrested

Bitcoin mining rigs were crushed by the Malaysian police with a steamroller, a video of which has now gone viral on YouTube. The police last week crushed more than a thousand electronic rigs used by Bitcoin miners illegally, with a steamroller. Authorities in the city of Miri in the coastal Sarawak state reportedly seized 1,069 rigs from miners who allegedly stole electricity to run mining operations. The devices were seized between February and April and have an estimated value of RM 5.3 million (roughly Rs. 9.4 crores). Eight people were reportedly arrested for being involved in mining activities using stolen electricity.

The authorities, however, did not mention why the police decided to destroy the rigs in such a dramatic way, and not use the expensive systems for something else.

A local news outlet in Sarawak, Dayak Daily, uploaded the video on YouTube that shows the rigs being steamrolled. Watch the video below:

China Cryptocurrency Ban Forces Some Bitcoin Miners to Flee Overseas

As the cryptocurrency market surged earlier this year, it brought into focus the massive energy consumption in mining digital coins. The energy-intensive “proof-of-work” process, through which Bitcoins are earned/generated, makes computers compete to solve complex mathematical equations. Given the competitive element in the quest for valuable cryptocurrency, powerful mining rigs — PCs purpose-built to maximise mining rewards — are preferred by cryptocurrency miners.

A total of 1,069 units of Bitcoin mining rigs were seized in the Malaysian city, reported local newspaper The Star. All the seized rigs were “disposed of” at the Miri district police headquarters on Friday, July 16.

These Crypto Mining Machines Can Run on Cow Manure

The report said the Sarawak electricity board suffered damages of RM 8.4million (roughly Rs. 14.89 crores) due to electricity theft by Bitcoin miners. The individuals arrested for electricity theft have been fined up to RM 8,000 (roughly Rs. 1.41 lakhs) and jailed for up to eight months, the police chief told The Star.

Electricity theft is a major issue in regions where Bitcoin is mined as some miners use illegal means to secure the power supply necessary to make a big profit from cryptocurrency mining. Because of the additional pressure it puts on the electric grid, authorities have to often resort to load sharing that results in regular outages.

 

Reckless’: G20 states subsidised fossil fuels by $3tn since 2015, says report

Support for coal, oil and gas remains high despite pledges to tackle climate crisis

Workers at a coalmine in Huaibei in Anhui province, central China. Photograph: Huang Shi Peng/AP

Damian Carrington Environment editor

@dpcarrington

Tue 20 Jul 2021 

The G20 countries have provided more than $3.3tn (£2.4tn) in subsidies for fossil fuels since the Paris climate agreement was sealed in 2015, a report shows, despite many committing to tackle the crisis.

This backing for coal, oil and gas is “​​reckless” in the face of the escalating climate emergency, according to the report’s authors, and urgent action is needed to phase out the support. The $3.3tn could have built solar plants equivalent to three times the US electricity grid, the report says.

The G20 countries account for nearly three-quarters of the global carbon emissions that drive global heating.

The report, by BloombergNEF and Bloomberg Philanthropies, focuses on three areas where immediate action is needed to limit global temperature rise to 1.5C: ending fossil fuel subsidies, putting a price on carbon emissions and making companies disclose the risks posed by climate change to their businesses.

The report says all 19 G20 member states continue to provide substantial financial support for fossil-fuel production and consumption – the EU bloc is the 20th member. Overall, subsidies fell by 2% a year from 2015 to reach $636bn in 2019, the latest data available.

But Australia increased its fossil fuel subsidies by 48% over the period, Canada’s support rose by 40% and that from the US by 37%. The UK’s subsidies fell by 18% over that time but still stood at $17bn in 2019, according to the report. The biggest subsidies came from China, Saudi Arabia, Russia and India, which together accounted for about half of all the subsidies.

The G20 agreed in 2009 to phase out “inefficient” fossil fuel subsidies but did not define inefficient and little progress had been made.

“On paper, global leaders and governments are recognising the urgency of the climate challenge and the G20 countries have all made ambitious commitments to scale down fossil fuel development and transition to a low-carbon economy,” said Antha Williams, the environment lead at Bloomberg Philanthropies.

“But, in reality, the action taken by these countries up until this point is a far cry from what is needed. As a host of climate emergencies intensify around the world, the continued development of fossil fuel infrastructure is nothing short of reckless. We need more than just words – we need action.”

The UN special climate envoy, Michael Bloomberg, the founder of Bloomberg Philanthropies, and the UN-backed Net-Zero Asset Owner Alliance (NZAOA), which represents more than $6.6tn of investments, both urged governments to act, before a meeting of G20 energy and climate ministers in Italy on Friday.

“New [commitments] and net-zero targets from some G20 countries are warmly welcome,” said Günther Thallinger, at the financial services firm Allianz and the chair of NZAOA. “However, pledges and targets alone will not be sufficient to change course.”

The report found that 60% of the fossil fuel subsidies went to the companies producing fossil fuels and 40% to cutting prices for energy consumers.

“This funding really encourages the potentially wasteful production and use of fossil fuels and can mean emission-intensive assets are funded today, thereby locking in their emissions for decades,” said Vicky Cuming at BloombergNEF and an author of the report.

“There’s evidence that [subsidies] disproportionately benefit wealthier consumers, rather than vulnerable groups,” she said. The gilets jaunes (yellow vests) protests in France in 2018 showed that cutting fuel subsidies was politically delicate, she said.

Experts say ensuring less well-off consumers are protected from such changes is crucial for policies to be successful.

The report also examined how G20 countries were putting a price on carbon pollution. It found that more than 80% of emissions were covered by such prices in France, Germany and South Africa.

In the UK, 31% of emissions are covered but the UK has one of highest carbon prices at $58 per tonne of CO2. Just 8% of US emissions are covered and at the low price of $6 per tonne. Russia, Brazil, and India do not have any carbon prices.

The report says making companies disclose the risks the climate crisis poses to their businesses is critical to enabling financial markets to push capital away from polluting sectors and into green ones. But only the UK and EU have said they will enforce such a policy.

A recent report by the International Institute for Sustainable Development concluded that reforming fossil fuel subsidies aimed at consumers in 32 countries could reduce CO2 emissions by 5.5bn tonnes by 2030, equivalent to the annual emissions of about 1,000 coal-fired power plants. It said these changes would also save governments nearly $3tn by 2030.

In June, more than 500 organisations called on US policymakers to eliminate fossil fuel subsidies from the US tax code. “It is past time to remove the burden of dirty energy support from the public and instead turn the efforts of the government to supporting clean energy and the jobs it generates,” the letter says.

FIDE WORLD CUP OF CHESS

 

GM Artur Jussupow makes the first move in game two of the Anand-Kramnik match. Photo: Guido Kohlen/Sparkassen Chess Trophy.

Anand Beats Kramnik In No Castling Match

PeterDoggers

Updated: Jul 19, 2021, 
|Chess Event Coverage

GM Viswanathan Anand defeated GM Vladimir Kramnik 2.5-1.5 in a four-game No Castling chess match in Dortmund, Germany. Anand's win in the first game was decisive in this event where the players were not allowed to castle.

The idea for this match originates from DeepMind's latest paper, co-written by Kramnik, in which the self-learning chess engine AlphaZero was used to explore the design of different variants of the game of chess with different sets of rules. One of the variants discussed—many of which you can try on Chess.com yourself!—was No Castling. DeepMind also supported the match between Anand and Kramnik and plans to sponsor the event next year as well.

The match saw all four games starting with 1.c4, with Black responding 1...c5 in the first three before Anand tried a Tarrasch setup in game four. There was a lot of exciting chess, but the first game turned out to be the decisive one

Wind energy CEOs warn G20 leaders over climate targets

Groups including Siemens Gamesa and Vestas say goals will be missed without increased turbine use

Wind energy is expected by groups including the International Energy Agency and the International Renewables Energy Agency to form the backbone of global electricity generation by 2050 

Nathalie Thomas in Edinburgh 

The heads of many of the world’s biggest wind energy companies have told global leaders that efforts to meet global climate goals are “condemned to fail” if they do not urgently step up turbine installation.

Chief executives of groups including Vestas, Orsted, Siemens Gamesa, SSE and RWE Renewables wrote to G20 heads of state on Monday warning that they would “fall short” of the wind capacity required for carbon neutrality by 2050 by 43 per cent, based on current growth forecasts.

Wind energy is expected by groups including the International Energy Agency and the International Renewables Energy Agency to form the backbone of global electricity generation by 2050.

A record 93 gigawatts was installed in 2020 despite the global pandemic, largely in China and the US, but annual deployment will have to quadruple in the next decade to set big economies on the path to reach climate targets.

However, this will be “unachievable without decisive and urgent policy change across the G20 countries”, the chief executives warn in the letter, which was co-ordinated by the Global Wind Energy Council.

The European Offshore Wind Deployment Centre off the coast of Scotland © REUTERS

They are urging governments to set more ambitious national wind energy targets as well as solve problems that prevent the delivery of projects such as “inadequate” permitting and planning regimes as well as insufficient investment in electricity grids.

Clean energy stocks have experienced a sharp sell-off this year, after reaching all-time highs in January, as nervousness has crept in among investors about the speed of the sector’s growth.

Shares in Siemens Gamesa, the world’s largest offshore wind turbine maker, have fallen more than a fifth in the past five days after its latest profits warning last week, which cited several factors including a sharp increase in raw materials prices. Its shares have lost more than a third in the year to date; rivals Orsted and Vestas are down 30 per cent and 22 per cent, respectively, over the same period.

Ben Backwell, chief executive of the GWEC, said that problems varied according to the market, but even in the some of the more ambitious countries — such as the UK, where Boris Johnson plans to quadruple offshore wind capacity to 40GW by 2030 — it can take a “long, long time” for projects to come to fruition. He pointed out that seabed rights for offshore wind projects currently under construction were awarded more than a decade ago.

Norway’s prime minister Erna Solberg says Oslo remains committed to oil and gas

In emerging markets in particular, there were insufficient “push” factors to remove fossil fuels from the energy system, said Backwell. Renewables were often only added to increase capacity rather than replace existing polluting power stations, while in times of economic downturn renewable energy auctions were often cancelled.

The letter has been timed to come ahead of G20 ministerial sessions on the environment, climate and energy at the end of the week in Naples.

Climate groups were left disappointed after June’s G7 summit in Cornwall ended without specific plans for new climate financing.

“Action to tackle climate change is lagging, and time is running out,” the chief executives, who also include Miguel Stilwell d’Andrade of Portugal’s EDP and Mary Quaney of Mainstream Renewable Power, wrote in the letter. “The choices made in this year and in this decade are mission-critical to preserving our planet and avoiding climate catastrophe.”

Their urgency echoes calls from other groups — including the IEA, which warned in May that energy groups must stop all new oil and gas exploration from this year, while calling for a “historical surge” in investment, predominantly in clean energy technologies.

Vulcan Energy signs lithium hydroxide supply deal with LG Chem unit

Reuters | July 18, 2021 | 

Insheim, site of Vulcan’s lithium extraction project in Germany. Credit: Wikipedia

Australia-listed lithium miner Vulcan Energy Resources said on Monday it had signed a long-term deal to sell lithium hydroxide from its German project to the battery unit of South Korea’s LG Chem .


Vulcan, which will extract lithium from geothermal brine via its 1.7 billion euro ($1.4 billion) project, said the five-year deal could be renewed for five more years. The contract is expected to be finalised by the end of November.

Vulcan’s process for extracting lithium, a key ingredient for electric vehicle batteries, will produce renewable power and emit no carbon dioxide, unlike Australia’s hard rock lithium mining. The water will also be recycled, unlike the evaporation technique used in arid areas of South America.

The company, which plans to operate in Germany’s Upper Rhine Rift, said LG Chem’s LG Energy Solution (LGES) would buy 5,000 tonnes of battery grade lithium hydroxide in 2024, the first year of production, rising to 10,000 tonnes a year. LGES will use the lithium to make battery cathodes.


THE LGES DEAL IS THE FIRST FOR VULCAN’S GERMAN PROJECT, ACCOUNTING FOR A QUARTER OF ITS OUTPUT FROM ITS FIVE PLANNED PLANTS

Vulcan’s German subsidiary was preparing for a potential listing in Frankfurt this year, the unit’s head Horst Kreuter said. “We are sensing a lot of interest from investors in Europe,” he told Reuters.

The LGES deal is the first for Vulcan’s German project, accounting for a quarter of its output from its five planned plants, which are expected to be operating from 2026.

Vulcan previously said it was open to selling 80% of its lithium via long-term deals with the rest sold on the spot market, but Managing Director Francis Wedin said Vulcan’s German operations could consider selling more via long-term contracts.

“We could go to 100% potentially of future supply we will just have to take it as it comes,” he told Reuters, adding that the firm was “overwhelmed with demand” from equipment makers.

Vulcan said it was in talks with several major customers in the European battery and electric vehicle markets, without offering details.

Vulcan signed a memorandum of understanding this month with French-Italian automaker Stellantis to supply lithium, sources said. Daimler previously said it was in talks about potential purchases from Vulcan.

Vulcan plans to expand in Germany’s Rhine Valley, which could include acquisitions, Wedin said.

Kreuter said the price for Vulcan’s lithium produced in Germany would be lower than the cost of lithium carbonate from Chile or Argentina.

“This is due to the additional revenue from the sale of renewable energy won from the thermal plants,” he said.

($1 = 1.1805 euros)

(By Melanie Burton and Sameer Manekar; Editing by Jason Neely and Edmund Blair)