Hardware manufacturer Canaan has launched a proof-of-concept project in Manitoba, Canada, deploying liquid-cooled Bitcoin mining equipment to capture waste heat and recycle it for commercial agricultural operations.
The 3 MW pilot, announced on Tuesday in partnership with Bitforest Investment, tests whether high-density computing infrastructure can serve as a practical heat source in cold climates rather than venting excess energy into the atmosphere.
The initiative deploys 360 Avalon A1566HA-460T units and four liquid-cooling modules at Bitforest’s tomato greenhouse under a 24-month term targeting 95% uptime.
Canaan estimates roughly 90% of server electricity can be captured as heat, outputting water temperatures exceeding 75°C at an all-in power cost of $0.035 per kilowatt-hour, making the economics particularly attractive for energy-intensive agricultural operations.
Turning Mining Heat Into Agricultural Energy
Heat generated by the mining machines will be captured through a closed-loop heat-exchange system and used to preheat intake water for the greenhouse’s electric boilers.
This process allows the facility to reduce its direct heating costs while maintaining optimal growing conditions for year-round crop production.
The project seeks to measure heat-recovery efficiency, system stability, and operating intensity while evaluating potential capital savings from eliminating industrial cooling towers.
Beyond energy reuse, Canaan plans to assess key performance indicators for agricultural applications under real operating conditions, testing the commercial viability of integrating Bitcoin mining with intensive farming operations.
Bitforest’s Manitoba facility focuses on year-round tomato cultivation, making a consistent heat supply critical for maintaining production levels during harsh Canadian winters.
The greenhouse application represents a practical use case for mining’s thermal output in northern climates where heating costs represent a substantial operational expense, potentially establishing a template for similar dual-purpose installations across Canada’s agricultural sector.
Institutional Pressure Accelerates Bitcoin Mining Sustainability Shift
Institutional demand is driving Bitcoin mining’s green transformation, according to Kevin O’Leary, who told Cryptonews that major buyers increasingly require sustainably mined coins.
O’Leary, speaking alongside Bitzero CEO Mohammed Bakhashwain, argued that Bitcoin mining has delivered net benefits for energy efficiency across the computing sector.
“When a coin is created from surplus electricity, as in Bitzero’s Norway site, it’s capturing the value of that energy in perpetuity,” he said. “It’s pushing compute forward and making it more efficient for everybody.”
Meanwhile, comprehensive research by independent analyst Daniel Batten challenges persistent criticisms of Bitcoin mining’s grid impact.
His analysis, titled “Common Bitcoin Energy Misconceptions,” presents evidence from peer-reviewed studies and real-world grid data that contradicts narratives suggesting the technology burdens power systems and drives up consumer costs.
New research shows Bitcoin mining stabilizes electrical grids and reduces consumer costs through flexible demand rather than burdening power systems.#Bitcoin #Mininghttps://t.co/4I4W2Lkcna
— Cryptonews.com (@cryptonews) January 5, 2026
Multiple independent studies confirm Bitcoin mining’s capacity to balance electrical grids due to its interruptible nature, particularly on networks transitioning toward higher concentrations of variable renewable energy sources like solar and wind.
A whitepaper from Duke University energy experts concluded that Controllable Load Resources, including Bitcoin mining operations, help stabilize grids and defer the costs of expensive infrastructure upgrades.
Renewable Energy Now Powers Majority of the Bitcoin Network
Cambridge University researchers recently reported that renewable sources now power over 52% of the Bitcoin network, up from 37% in 2022.
The Cambridge Centre for Alternative Finance study shows sustainable power in Bitcoin mining includes 9.8% nuclear and 42.6% renewables like hydro, solar, and wind.
Natural gas has replaced coal as the single largest energy source for the first time, now accounting for 38.2% of mining electricity versus 25% three years earlier.
Coal usage plummeted to 8.9% from 36.6% during the same period, representing one of the most dramatic energy transitions in any industrial sector.
The shift reflects miners’ transition toward cheaper, off-grid power sources and marks a substantial reversal in the industry’s carbon footprint.
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