Russian crypto mining operator Bitriver will use electricity from associated gas provided by Gazprom Neft to mint digital coins. In return, as part of a new agreement, the mining company will build the digital infrastructure at the oil producer’s wells in Russia.
Crypto mining operator Bitriver is partnering with Russian oil giant Gazprom Neft
Russia’s third-largest oil producer, Gazprom Neft, will power data centers run by the country’s leading crypto-mining company, Bitriver. The electricity needed to produce the digital currencies is derived from associated gas, a form of natural gas found in oil deposits.
The deal is part of a cooperation agreement signed by the two companies during the International Economic Forum in St. Petersburg, RBC Crypto reported, citing a Bitriver representative. The announcement comes after the Russian mine operator was recently placed under US sanctions.
In accordance with the agreement, the mining company will develop the digital infrastructure on Gazprom Neft’s oil fields and offer computer hardware-based services, the report details.
Gazprom Neft’s business model does not include digital currencies, but the oil giant is looking for solutions that will allow “useful use” of associated gas obtained during oil production.
The necessary infrastructure to use the associated gas for the energy-intensive mining of crypto assets has already been set up at Gazprom Neft companies in three Russian regions.
Gazprom Neft is the oil subsidiary of the state-controlled Russian natural gas giant Gazprom. Reports that the company is offering Bitcoin miners the opportunity to exploit the excess gas from oil drilling emerged in January last year. US companies have also used stranded gas to mint crypto.
Oil-rich Oman announced a plan to use associated gas to mine bitcoin, aiming to reduce harmful emissions into the atmosphere where that gas is typically vented or burned. The country bought a $350 million stake in US firm Crusoe Energy Systems Inc., which specializes in crypto mining using energy from surplus fuel.
Do you expect other oil companies to start collaborating with cryptocurrency miners to exploit the associated petroleum gas? Tell us in the comment section below.
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