The Potential Relationship between Biomass, Biorefineries, and Bitcoin

Georgeio Semaan (), Guizhou Wang, Quoc Si Vo and Gopalakrishnan Kumar
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Georgeio Semaan: Faculty of Science and Technology, University of Stavanger, 4036 Stavanger, Norway
Guizhou Wang: Faculty of Science and Technology, University of Stavanger, 4036 Stavanger, Norway
Quoc Si Vo: Faculty of Science and Technology, University of Stavanger, 4036 Stavanger, Norway
Gopalakrishnan Kumar: Faculty of Science and Technology, University of Stavanger, 4036 Stavanger, Norway

Sustainability, 2024, vol. 16, issue 18, 1-13

Abstract: Despite advances in biofuel production and biomass processing technologies, biorefineries still experience commercialization issues. When costs exceed revenues, their long-term economic sustainability is threatened. Although integrated biorefineries have significant global potential due to process integration and product co-generation, it is crucial that they generate a positive net return, thereby incentivizing their continual operation. Nonetheless, research and development into new system designs and process integration are required to address current biorefinery inefficiencies. The integration of Bitcoin mining into biorefineries represents an innovative approach to diversify revenue streams and potentially offset costs, ensuring the economic viability and commercial success of biorefineries. When using bio-H 2 , a total of 3904 sats/kg fuel can be obtained as opposed to 537 sats/kg fuel when using syngas. Bitcoin, whether produced onsite or not, is an accretive asset that can offset the sales price of other produced biochemicals and biomaterials, thereby making biorefineries more competitive at offering their products. Collaborations with policy makers and industry stakeholders will be essential to address regulatory challenges and develop supportive frameworks for widespread implementation. Over time, the integration of Bitcoin mining in biorefineries could transform the financial dynamics of the bio-based products market, making them more affordable and accessible whilst pushing towards sustainable development and energy transition.

Keywords: biofuel; biorefinery; bitcoin; bitcoin mining; cryptocurrency; value added products (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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