Gazprom Neft Mines Bitcoin as an Alternative to Flaring Unwanted Gas – Journal of Petroleum Technology

Gazprom Neft Mines Bitcoin as an Alternative to Flaring Unwanted Gas – Journal of Petroleum Technology

Electricity produced from flare gas may be inefficient as far as the grid goes, but powering bitcoin mining farms may be another matter.

Russia’s state-owned oil major Gazprom Neft has reported a successful pilot test using associated gas that would otherwise be flared to produce electricity for mining cryptocurrency at one of its Siberian drilling sites.

Media sites covering the cryptocurrency industry reported that a small Russian mining operation called Vekus is the first to leverage the power of Gazprom Neft’s unwanted gas and now the Russian major wants to expand the project.

Russia places first among gas-flaring nations followed by Iraq, the US, and Iran, which together accounted for 45% of global gas flaring from 2017–2019, according to the United Nation’s 2020 Global Gas Flaring Tracker report released in July.

Flaring leads to the release of a significant amount of greenhouse gas into the atmosphere, but from an industrial perspective to do anything else makes no commercial sense. The advent of cryptocurrency mining may change things however.

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