ExxonMobil uses bitcoin mining to limit greenhouse gas emissions

Oil giant ExxonMobil has been experimenting with bitcoin mining for a year to reduce greenhouse gas emissions from oil extraction. With mobile mining installations, they capture excess and climate-unfriendly natural gas that is flared or discharged into the atmosphere under other circumstances, to use it instead to mine bitcoins. Limiting harmful emissions is therefore no longer a cost item, but profitable.

As part of plans to reduce greenhouse gas emissions, ExxonMobil started a pilot in North Dakota last year to capture excess gas released during oil extraction and use it for bitcoin mining, Bloomberg reported. ExxonMobil works together with Crusoe Energy Systems, which supplies portable mining installations.

6% of all greenhouse gases

The gas that comes up during oil extraction is very climate-unfriendly. This often concerns methane, which is many times more harmful to the climate than CO2. There is no application for the gas on site and it is often not economically viable to capture or dispose of it.

vented directly into the atmosphere , and in some places it still is, but today it is usually flared ( flaring ). These are the flames that often come out of pipes day and night in places where oil is extracted.

Flaring is slightly less harmful, but combustion is still very climate-unfriendly. CO2 is released and part of the gas does not burn and ends up in the atmosphere. Some 8% of global gas production would be lost to venting and flaring, accounting for approximately 6% of global greenhouse gas emissions.

During the COP26 climate conference, more than 100 countries therefore agreed that flaring must be reduced by 30% by 2030. The World Bank called for a 100% reduction by 2030. ExxonMobil itself aims to reduce emissions from flaring by 40% to 50% in the coming years.

Bitcoin mining for the climate

Crusoe Energy Systems’ mobile mining installations help with this. These are movable containers with mining equipment and a generator that are directly connected to the excess gas. In principle, 100% of the excess gas can be collected and used. The more the better, because it pays to optimize efficiency.

That happens. ?ǣWhen we connect it to our generator, we achieve 99.9% methane combustion ,?ǥ Crusoe Energy Systems CEO Cully Cavness tells CNBC. “Not only are we using energy that would otherwise be wasted, but we’re also significantly reducing methane emissions.”

Once the gas has been used up, the container can easily be moved to another location. The profitability of mining is high, because the cost price of the excess gas is nil. The gas thus changes from an environmentally polluting cost item to an economic advantage that encourages to pollute as little as possible.

Good luck

The pilot was well received. Expansion followed after just six months and ExxonMobile is now considering similar projects in Alaska, Nigeria, Argentina, Guyana and Germany.

ExxonMobil is not the only oil giant mining bitcoin. Crusoe Energy Systems also entered into a partnership with the Norwegian energy producer Equinor.

It was also recently announced that oil company ConocoPhilips has started a similar pilot with bitcoin mining. The Russian Gazprom-Neft has previously also carried out pilots in Siberia, which are being expanded due to success.

Crusoe Energy Systems has been working for some time. The World Bank recently included the company in a report on innovative solutions for excess gas. According to Crusoe Energy Systems, it has already supplied ‘Digital Flare Mitigation’ installations to companies in Wyoming, Colorado, Montana and North Dakota.

Incidentally, they are not the only company that offers such installations. EZ Blockchain, Giga Energy Solutions and Upstream Data provide similar mining rigs.

From mining based on climate-unfriendly pig manure to balancing the power grid: bitcoin mining offers all kinds of solutions for the energy sector.

s: Aka CJ, public domain, Roy Luck, license CC BY 2.0

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

© 2024 Cryptocoin Budisma.net