Russian crypto mining operator Bitriver will use electricity generated from associated gas provided by Gazprom Neft to mint digital coins. As part of a new agreement, the mining company will in return develop the digital infrastructure at the oil producer’s wells in Russia.
Crypto Mining Operator Bitriver to Cooperate With Russian Oil Giant Gazprom Neft
Russia’s third largest oil producer, Gazprom Neft, will power data centers operated by the country’s leading crypto mining company, Bitriver. The electricity needed for the production of digital currencies will be generated using associated petroleum gas, a form of natural gas found with oil deposits.
The arrangement is part of a memorandum of cooperation signed by the two companies during the St. Petersburg International Economic Forum, RBC Crypto reported, quoting a Bitriver representative. The announcement comes after the Russian mining operator was recently placed under U.S. sanctions.
In accordance with the agreement, the mining firm will develop the digital infrastructure at Gazprom Neft’s oil fields and provide services relying on computing hardware, the report details.
Gazprom Neft’s business model does not encompass digital currencies but the oil giant is seeking solutions that would allow the “beneficial use” of the associated gas obtained during oil extraction.
The infrastructure necessary to utilize the associated gas for the energy-intensive mining of crypto assets has been built already at Gazprom Neft enterprises in three Russian regions.
Gazprom Neft is the oil subsidiary of the Russian state-controlled natural gas giant Gazprom. Initial reports that the company is offering bitcoin miners an opportunity to use the excess gas from oil drilling came out in January, last year. U.S. companies have been using stranded gas to mint crypto, too.
Oil-rich Oman announced a plan to employ associated gas to mine bitcoin, with the goal of reducing harmful emissions into the atmosphere where this gas is usually vented or burned. The country bought a $350-million stake in the U.S. firm Crusoe Energy Systems Inc., which specializes in crypto mining with energy from excess fuel.
Do you expect other oil companies to start cooperating with cryptocurrency miners to utilize associated petroleum gas? Tell us in the comments section below.
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Author: Lubomir Tassev