Equinor Energy to channel associated gas from the Bakken oil field to Bitcoin mining

Norwegian energy company Equinor Energy will channel the associated gas produced during oil extraction at the Bakken field in the United States to generate electricity and power Bitcoin mining. The arrangement is provided by Crusoe Energy Solutions, according to Arcane Research.

Analysts obtained screenshots from Equinor Energy’s corporate network. The collaboration with Crusoe Energy Solutions is aimed at reducing harmful emissions and preserving economic efficiency.

After the technology is deployed, Equinor Energy expects to cut CO₂ emissions by 20,000 tonnes per year.

Two generators produce electricity to power four modules of mining equipment (left). The interior of the Crusoe Energy Solutions mining farm (right). Source: Arcane Research.

The electricity generated is sufficient to power the mining equipment and cooling systems.

“This scalable solution reduces the gap between the energy source and its final consumption while simultaneously reducing carbon dioxide emissions,” explained Lionel Ribeiro, a representative of the energy company.

Arcane Research analysts say that “digital flare mitigation” of the gas flare creates mutual benefits for producers and investors. The technology is relatively new, but is actively spreading among shale oil and gas producers. A pioneer in this field has been Upstream Data Inc.

Crusoe is backed by the Winklevoss brothers, who participated in a seed funding round for the company worth $4.5 million. In the subsequent $70 million funding round, they increased their equity stake in the startup.

For details on how the Bitcoin mining industry works and why, read ForkLog’s feature:

How the Bitcoin mining industry works and why the hashrate could rise to 260 EH/s

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