Edinburgh-based crypto platform Zumo has announced the successful completion of its Zero Hero pilot project.

The project was a live trial to buy Renewable Energy Certificates (RECs, where 1 REC equals 1 MWh of green electricity) to compensate for the electricity usage of bitcoin bought via the Zumo app.

Over the pilot period, bitcoin to the value of £1.5 million has been covered by Zero Hero REC purchases, with a total of 850 megawatt-hours (MWh) of electricity compensated via the programme.

Polling data collected after the Zumo pilot found that 84% of customers feel the issue of environmental sustainability in crypto is an important topic the sector should be working urgently to address. The same number also agreed that they are more likely to use a crypto wallet that offers built-in features that play a role in reducing crypto’s environmental impact.

Results from the Zero Hero pilot have been presented in Zumo’s ‘Decarbonising Crypto: Towards Practical Solutions’ report.

The report argues that REC markets must increase in sophistication and in efficiency if they are to meet the current requirements of net zero strategies. Crucially, crypto – as an emerging electricity-focused sector – has a unique opportunity to shake up this marketplace and signal a new wave of demand.

Discussion around cryptocurrency’s climate impact has been a hot topic over the last few years. A report from October last year warned that “urgent progress” is required to accelerate decarbonisation of the sector.

Previous research carried out by Zumo found that the cryptocurrency sector must target full decarbonisation by 2030.

The ‘Decarbonising Crypto: A state of play’ report suggested that lingering environmental concerns are a key hurdle to ensuring mass-market appeal.

For the next stage of its work, Zumo and its partner, Zero Labs, have been awarded a grant by Innovate UK, the UK’s national innovation agency, to further fund research into the decarbonisation of crypto.

The RenewableCrypto project will kick off later this month and see Zumo working with Zero Labs to find practical ways in which wallets and platforms can scale the use of renewable energy.

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Commenting on the news, Doug Miller, Co-Founder, Zero Labs, said: “Zumo is demonstrating leadership in the Crypto Climate Accord (CCA) community in two ways: leading dialogues about how to estimate the energy use of BTC holdings and procuring clean energy to power Zumo platform customers’ holdings in a verifiable way.

“Zero Labs is thrilled to support Zumo with scaling a solution across its growing customer base to increase demand for clean energy around the globe and convert the wider crypto industry into a newfound source of demand for clean energy in voluntary markets.”

Kirsteen Harrison, Environmental and Sustainability Adviser, Zumo, added: “The results of our Zero Hero pilot project are hugely encouraging, showing both what is possible and a significant appetite from customers for clean energy solutions.

“But this is just the beginning, and the story can only continue through the collaboration of all market participants – miners, platforms, and end users – within the crypto sector. We hope that our new report will help continue to shift the dial from talk towards action.

“Along with our partners at Zero Labs, we’re aiming to lead this charge and explore new, digital-led solutions that remove practical barriers to voluntary renewables procurement and verifying green credentials. With electricity being the most significant part of crypto’s carbon footprint, we have a unique opportunity as a sector to rapidly decarbonise.”

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