Bitcoin and cryptocurrency miners are pushing for the adoption of new sustainable energy sources to sustain their activities in the long term, being friendly and respectful of the environment.
the mining of Bitcoin (BTC) and cryptocurrencies, , although it can be very profitable, it also generates high energy consumption, which can be quite counterproductive for the miner and for the environment. Thus, the proposal presented by gazpromneft, the oil exploration subsidiary of Russian gas and energy giant Gazprom, could be very attractive as it would be leveraging passive resources from its core business for cryptocurrency mining.
According to the company, the CO2 that is released and burned in the atmosphere after oil extraction can be used to support cryptocurrency mining activity, by transforming it into electricity that guarantees the operation of mining equipment. This different exploitation of a waste gas, such as CO2, can further favor the profitability and profit of cryptocurrency mining, providing a much more economical energy supply for the industry.
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Bitcoin mining, a solution to gas flaring
The United States is the country leading this initiative. Since last year, companies Upstream Data y Crusoe Energy Systems, are creating innovative initiatives to connect cryptocurrency mining with oil exploitation sites, in order to take advantage of the residual gas produced by this activity and transform it into clean and useful energy.
Reusing gas emissions benefits both oil companies, as it reduces their CO2 emissions into the environment, and the fines that this entails; and cryptocurrency mining companies, which are constantly searching for more environmentally friendly economic energy. In fact, during the Mining Summit organized by Fidelity Center for Applied TechnologyIn May 2019, Bitcoin and other cryptocurrency miners defended their activity; pointing out that the industry is promoting the adoption of renewable energy to support the operations of the Bitcoin network, without the environmental disasters that some predict, due to the large amount of energy that this network requires to remain in operation. In addition, they stressed that attacks on the Bitcoin network, as a terrible problem for the environment due to its energy expenditure, are unfounded, since studies of Digiconomist For that year they revealed that The Bitcoin network accounts for only 0,26% of global energy consumption.
The oil industry's potential for cryptocurrency mining
Gazpromneft's move in Russia follows in the footsteps of the United States to support cryptocurrency mining activities with clean energy, promoting this activity as a solution to gas flaring. Gazpromneft has located a power plant that transforms gas into electricity in Siberia, very close to where one of its oil exploitation sites in the country is located.
Gazpromneft notes that the country has great potential to boost this new source of energy supply for cryptocurrency mining, since produces about 340 billion cubic meters of associated gas every 6 months, but it does not have the infrastructure to process it in its entirety; it also cites that the difficult transportation in remote areas, such as Siberia and the Arctic, makes this product unprofitable, so it considers a better use to transform it to obtain electricity and sell it to consumers, which in this case would be cryptocurrency mining farms.
The company already performed a test with the mining company Vekus, operating 150 Bitmain S7 ASIC rigs that generated 1,8 BTC with a consumption of 49.500 cubic meters of associated gas.
Gazprom, a growing interest in cryptocurrencies
Gazprom is a privately-run company, but with the government as one of its main shareholders. In addition to being the largest gas and energy company in Russia, it also has a commercial bank. Thus, with a subsidiary in the financial sector and the Russian government being one of the main drivers of blockchain technology in the world, it is notable that Gazprom is showing a growing interest in the development and adoption of new technologies.
In November, Gazprombank began offering financial services with Bitcoin from its subsidiary in Switzerland, with the authorization of the Financial Market Supervisory Authority of this country. Likewise, Gazpromneft is a participant in the platform. Masterchain Blockchain, Russia's national blockchain network, which has its own node that allows it to issue its own digital guarantees; and implements blockchain technology, together with the airline S7 Airlines, for aircraft refueling.
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