Canadian Oil Company to Allocate its Untapped Energy in Mining Bitcoin (Report)

By | March 31, 2022



Bengal Energy – a Canadian-based oil and gas company – will reportedly deploy energy from “stranded” gas wells into bitcoin mining operations. The firm also intends to set up 70 BTC mining rigs inside a portable building (known as “donga”) near the Cooper Basin.

Bengal Energy Jumps Into BTC Mining

Cryptocurrency mining has been a controversial topic in the last several years. On the one hand, it is vital for proof-of-work-based assets (such as bitcoin) as it validates transactions and creates new coins. On the other, it consumes a considerable amount of energy and could negatively impact the environment depending on the source of energy used.

As such, many companies have started looking for alternative options to power their supercomputers. According to a recent report by The Australian, the latest such organization is Bengal Energy. The latter is an international oil and gas exploration and production firm that has had no relation with the crypto sector so far.

However, Kai Eberspaecher – Bengal Energy’s Chief Operating Officer – revealed that the entity plans to jump on the bandwagon by deploying around 70 bitcoin mining rigs. Interestingly, its electricity source will be provided from “stranded” gas wells belonging to the company’s partners – Santos Energy and Bridgeport Energy:

“This company acquired the gas wells from its local oil and gas extraction partners, Santos Energy and Bridgeport Energy.”

These energy sources are located in a remote area near the Cooper Basin in Australia. Before employing the gas wells, Bengal Energy will need to fix its distribution pipelines as they are currently exacerbated by Covid-related supply chain issues.

“We were looking at six months of having wells ready but without an outlet. We were dealing with stranded assets,” Eberspaecher explained.

Assuming the trial is successful, Bengal Energy could generate income ranging from $2,000 to $5,000 per day from its bitcoin mining activity, the report said.

US BTC Miners Uses Coal Waste to Power its Operations

Another company that employs alternative energy sources to mine cryptocurrencies is the Pennsylvania-based – Stronghold Digital Mining. Earlier this month, the firm vowed to use coal ash left behind by decades-old power plants.

Stronghold said the byproduct is located in a nearby mine in the Pennsylvania area. After being processed, the coal waste goes to a boiler building, where it is burned to generate the electricity needed for mining bitcoin.

Apart from not harming the national electricity system, Stronghold’s initiative provides another advantage. Coal ash contains heavy metals, and if not isolated or extracted from the ground, it could pollute waterways and endanger the local population’s health.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.



Source link