Flared Natural Gas: Is This Next Energy Source For Bitcoin Miners?

The environmental damage caused by severe carbon dioxide emissions of blockchain technologies, especially Bitcoin mining, has been the subject of ongoing disputes for as long as those emissions have been measured. Because crypto mining machines, particularly Bitcoin, consume a significant amount of energy, it was only a matter of time before mining businesses began searching for alternative, less expensive sources of electricity. As a result, a logical question emerges: what kinds of resources can be used to produce such enormous quantities of electricity? To reduce the concern of environmental impacts, it is vital to make the transition to the use of renewable energy sources in order to provide this much-needed electrical power. Another option is to generate energy from waste from other industries, which is where flared natural gas comes into the picture. Is this the next energy source for Bitcoin miners? Flared natural gas as an alternative energy source Oil and gas companies have spent years trying to find a solution to the problem of what to do in the event that they strike a natural gas formation by accident while drilling for oil. Rather than having to deal with the economically stressful process of transporting the gas to refineries, which would not be lucrative, these oil corporations have decided to just flare the natural gas. Countless Bitcoin miners are tapping into this source of energy to generate cheaper electricity to power their Bitcoin mining rigs. This is done to make use of the natural gas that is currently being squandered in the mining process. In order to accomplish this, they collect the natural gas, route it through pipes into a generator, and then use the energy produced by the generator to power bitcoin miners. This results in a more complete and controlled burn, which in turn results in a reduction in the CO2 emissions that are connected with the alternative method, which involves flaring the gas. In recent years, an increase in the number of oil-crypto partnerships has been seen in countries where a high quantity of natural gas is flared, especially in the U.S. Giga Energy Solutions, a Bitcoin mining company, is one of the many companies that are now harnessing electricity from wasted natural gas. Giga is currently undergoing a period of tremendous expansion. The company has recently secured contracts with over 20 different oil and gas companies, and it is on target to generate more than $20 million by the end of 2022. Another such Bitcoin mining company is Denver-based Crusoe Energy Systems, which is now valued at $1.75 billion. Earlier this year, oil and gas major ConocoPhillips announced its move into the natural gas bitcoin mining market. The Houston-based company is now supplying an undisclosed Bitcoin mining company with natural gas from the Bakken shale of North Dakota. Another big oil and gas corporation, Exxon Mobil, is reportedly running a pilot program in conjunction with Crusoe Energy Systems that use the natural gas that would otherwise be burned off from its North Dakota oil wells to power cryptocurrency mining operations. Evidently, this has resulted to be profitable, as seen by the company’s plans to roll out the program in another four countries. Governments in the United States and other nations are also backing this new approach to reducing carbon emissions from gas flaring. Regulations and incentives that could assist oil-crypto collaborations are also expected to emerge soon. Wyoming, for instance, approved legislation last year that provides tax benefits to oil companies that provide gas to cryptocurrency miners that would otherwise be flared. North Dakota is also working on ways to boost oil-crypto partnerships in the state. Government officials recently revealed that the state has already received $3 billion in the crypto investment and is on the verge of attracting another $3 billion in projects. Conclusion Mining using natural flared gas is one of the innovations to deal with the vast amount of energy used for Bitcoin mining operations. We can already see how this new solution is benefiting businesses. Several projects in the United States and other nations are already operational, reducing carbon emissions by up to 63% while increasing cryptocurrency revenues.

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