Bengal Energy, a Canadian oil and gas business, is dabbling in Bitcoin (BTC) mining as a way to tap into the untapped energy from its gas wells in the Australian outback.
Bengal Energy plans to conduct a pilot program where roughly 70 Bitcoin mining rigs will be set up inside a portable building — known in the local mining industry as a “donga” — that will be assembled near a series of previously out-of-service gas wells in the Cooper Basin, according to a report from The Australian.
Bengal Energy bought the gas wells from its local oil and gas extraction partners
Santos Energy and Bridgeport Energy, according to Kai Eberspaecher, the company’s chief operating officer.
The freshly acquired gas wells, according to Eberspacher, provided an unusual dilemma for the energy firm because they were “stranded wells.” While the corporation may technically generate electricity from the gas on site, the current distribution pipelines are too far away to reach.
A pipeline that can service Bengal’s remote gas wells is currently under construction, however the delays in development have been further exacerbated by Covid-related supply chain issues.
“We were basically looking at six months of having wells ready but without an outlet. We were dealing with stranded assets.”
The answer was discovered to be portable Bitcoin mining machines in Dongas. A trial donga will be equipped with 66 mining machines capable of generating around 0.005 BTC per day, or about $235.
Bengal Energy is apparently hoping to double its Bitcoin mining output by a ratio of 10 to 20 if the trial is successful, suggesting total income may range from $2000 to $5000 per day.
Bengal Energy joins a growing number of mining corporations, including ConocoPhilips and Exxon Mobil, that are looking to use portable Bitcoin mining operations to unlock the full potential of normally lost or stranded energy.
In response to widespread environmental concerns of Bitcoin mining, fossil fuel businesses have become increasingly concerned with discovering innovative ways to restrict the detrimental effects of mining processes and, where possible, harnessing any sustainable alternatives.
In the fourth quarter of 2021, the Bitcoin Mining Council predicted that the global industry would have a sustainable energy mix of 58.5 percent. Miners in Norway are even drying lumber with waste heat.
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