How can Bitcoin improve the abundance of water resources in water-deficient countries?

Enhancing Water Resources in Water-Scarce Countries The Potential Impact of Bitcoin

Author: Daniel Batten, Bitcoin Magazine; Translation: Song Xue, LianGuai

New data from Bloomberg shows that the Bitcoin network is actually the most sustainable energy-supported industry on Earth, with 53% of its energy coming from sustainable sources. The argument that “Bitcoin uses fossil fuels” is gradually being debunked.

In response to this news, a new attack medium has emerged: “Bitcoin uses too much water.” Apparently, if Bitcoin were to use fossil fuels as energy, that would be bad. But if it were to use hydropower, that would also be bad: it’s like the double bind used by witch hunters in the 17th century to determine whether a woman was a witch or not: “Throw her in the water. If she can swim, she’s a witch – execute her. If she drowns and can’t swim, then she’s not a witch.”

This is, of course, a ridiculous argument that can be applied to any electricity user you want to vilify. As for the methods used by the author of this study, de Vries, who measured the water consumption of each transaction, Cambridge University has exposed the energy consumption of each transaction and extended it to include any resource usage, as “this metric is meaningless.”

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Nevertheless, this hasn’t stopped many journalists from continuing to report on this study. As I wade through the symphony of off-key news, I can’t help but wonder, “What’s the real story behind Bitcoin and water?”.

So, I decided to do some research in another dimension: Can Bitcoin help with water security?

Where is water scarcity truly a problem?

Firstly, let’s find out which countries are most severely affected by water scarcity. A quick Google search tells me that “12 out of the 17 countries with the most water-stressed resources in the world are in the Middle East or North Africa.”

Out of curiosity, I further inquire how these countries are dealing with the issue of water scarcity.

As it turns out, the situation is quite dire:

• 60% of the population in these countries live under “severe water stress”;

• Scientists predict that this situation will worsen with climate change;

• Rainfall has decreased by 16.7% over the past 30 years;

• Many of these countries now consume more water than they receive in rainfall.

Wealthy countries like the United Arab Emirates use desalination to address this issue. However, desalination is costly and energy-intensive. It also comes with many environmental concerns, the most significant being that 78% of the UAE’s energy comes from fossil fuels (natural gas).

United Arab Emirates: UAE electricity production share (by source)

According to “National News” report, desalination plants are crucial for the world to have enough water for drinking.

Some estimates suggest that by 2030, there will be a 40% gap between water supply and demand. The dependence on desalination is increasing worldwide, with 53% of global desalination occurring in the Middle East.

Regional distribution of global desalination capacity by 2022

Efforts are being made to increasingly power desalination plants with renewable energy, but such projects take time. New technologies must be developed, and new solar power capacities must be built.

Dr. Muhammad Wakil Shahzad, a senior lecturer at Northumbria University in the UK, has developed a patented desalination system and confirmed this: “We are working to integrate [desalination systems] with renewable energy sources such as wind, wave, and solar. We have several prototypes in our lab,” he said.

These solar power plants can serve as alternatives to burning natural gas and provide power to desalination plants. It is crucial that the UAE plans to build large-scale solar projects in its vast, sunny deserts. The country’s largest solar project will become one of the largest in the world.

Jaran Mellerud of Luxos commented that these solar installations will “undoubtedly generate a significant surplus of electricity on a regular basis.”

How Bitcoin can help alleviate water scarcity #1: Accelerate renewable energy desalination construction

Absorbing and purchasing surplus solar energy is one of the areas where Bitcoin mining can help alleviate water scarcity.

Mellerud stated, “As an agnostic and interruptible consumer of electricity, Bitcoin miners can directly engage in business at these solar power plants to capture and monetize the otherwise wasted power.” A recent study by Cornell University confirmed that Bitcoin mining can enable solar power operators to gain more profits and expedite the scale-up of solar power operations.

By accelerating the construction of new solar capacity, Bitcoin mining can help the UAE transition to renewable energy desalination, meaning the UAE can achieve its water security goals without jeopardizing its emission reduction targets.

How Bitcoin mining can alleviate water scarcity #2: Improve desalination efficiency

According to CNBC, desalination is highly energy-intensive. Therefore, any efficiency improvement in operational costs means water can be desalinated at the same operational costs. This is why water resource management in the UAE, whether through desalination or groundwater, continually enhances operational efficiency.

Typically, heat is directly used for desalination. If the heat can be recovered, it can be reused. The recovered heat is now being used for desalination. The only difference is that, at the same time, desalination facilities are earning income from Bitcoin mining, which means their water-to-dollar ratio has increased: more water can be desalinated at the same net cost – an incredible achievement.

Summary:

The Middle East, the most water-scarce region in the world, faces even more severe water scarcity.

Desalination is an ideal solution for these countries – that’s why 53% of desalinated water now occurs in the Middle East. However, desalination is carbon-intensive and energy-intensive. Bitcoin mining helps address both of these issues.

First, by becoming a buyer of energy that would otherwise be wasted, it makes solar deployment in the Middle East more profitable, thus helping to reduce carbon intensity. Second, it enables desalination plants to generate Bitcoin and utilize the waste heat from ASICS for desalination, increasing profits, which means these plants can profit by desalinating more water.

In short, Bitcoin is far from being the root cause of the world’s water problems. Instead, it is helping the most water-scarce places in the world ensure their water security and profit without compromising their emission goals – something that other technologies cannot currently achieve.

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