Bloomberg: ExxonMobil involved in Bitcoin mining using flare gas

ExxonMobil, the oil major, is running a pilot project to use flare gas from wells in North Dakota to power Bitcoin mining. The report, Bloomberg reports, citing its own sources.

The partner is Crusoe Energy Systems. It receives surplus associated gas (ПНГ) that would otherwise be flared due to insufficient pipeline capacity.

The gas is used to power modular units that mine cryptocurrency, located directly beside the wells at the Bakken shale play.

The project began in January 2021, and in July the parties expanded its scope. Under the arrangement, Crusoe’s installations consume up to 0.5 million m³ of gas per month.

ExxonMobil plans to roll out similar pilots in Alaska, Nigeria, shale basins in Argentina, Guyana and Germany.

“We are constantly evaluating new technologies aimed at reducing flaring volumes in our operations,” said Sara Nordin, the company’s spokesperson.

She added that ExxonMobil aims to meet World Bank recommendations to end routine flaring of associated gas by 2030. The spokesperson described the information about the pilot as “rumors and speculation”.

Crusoe has permission in North Dakota to operate 20 mining modules, of which 11 are in use. The startup is pursuing two more similar projects — jointly with Equinor and Devon Energy.

In February it emerged that ConocoPhillips is selling associated gas from North Dakota wells to an unnamed Bitcoin miner.

Crusoe’s installations also flare gas, but unlike a flare this is not wasted — electricity is generated in the process. CoinShares estimates that 69 TWh of energy is lost annually to flaring at U.S. oil fields.

3/ @CoinSharesCo estimates that 69 TWh of wasted power in the U.S. is lost annually to flaring

Through #Bitcoin mining data centers, like those provided by @CrusoeEnergy & @upstreamdatainc, wasted flared energy can be repurposed but it can also reduce CO2 emissions. pic.twitter.com/2XjeFynrI7

— Messari (@MessariCrypto) March 6, 2022

In 2019, Crusoe attracted $70 million in funding and announced the deployment of 70 mining modules, each with a capacity of 1 MW.