Bengal Energy intends to mine BTC using energy discharged from “abandoned” gas reservoirs in response to the increase in BTC mining this year.
Bengal Electricity, an oil and gas firm in Canada, plans to invest in cryptocurrency mining operations using power from “abandoned” gas reservoirs. The company aims to install 70 Bitcoin mining machines within a temporary structure (donga) close to Cooper Basin.
Oil Company Enters Bitcoin Mining Industry
Crypto mining has become a bone of contention for some years. On one side, it is necessary for PoW cryptos like BTC and ETH since it verifies transactions and generates new currencies. Secondly, it uses a significant amount of electricity and, based on the kind of energy utilized, may negatively impact nature.
As a result, numerous firms have begun investigating alternate methods of powering their computing power. Bengal Energy is among the newest of such firms to explore other energy sources. The company is a worldwide oil producer with no prior ties to the cryptocurrency industry.
Meanwhile, the Senior Operating Officer of Bengal Energy, Kai Eberspaecher, indicated that the company intends to get on the hype by installing about 70 crypto mining machines. Interestingly, the corporation’s power will be generated by “abandoned” gas wells owned by its partners – Bridgeport and Santos Energy.
“This corporation bought the gas wells from Bridgeport Energy and Santos Energy, two oil and gas extraction companies,” he added.
These power plants are situated in an isolated region of Australia close to Cooper Basin area. Bengal Energy must first repair its distribution pipes, which are now compounded by Covid-19 related distribution network problems.
“We would have a six-month period during which we would have wells but no outlet. We had assets that had been stuck and had no use,” Eberspaecher remarked. If the experiment is successful, Bengal may earn between $2,000 and $5,000 each day from the mining operation, the statement said.
BTC Miners In The United States Rely On Coal To Power Their Operations.
Stronghold Digital Miners, situated in Pennsylvania, is yet another startup that mines bitcoins using new energy sources. At the beginning of March, the company announced its intention to utilize coal ash that has been left for decades to mine crypto.
According to Stronghold, the waste is found at a neighboring Pennsylvania mine. Following processing, the waste will be transported to a furnace building and burnt to provide the power required for BTC mining.
Other than causing damage to the nation’s power grid, Stronghold’s idea has another benefit. Coal ash has heavy metals, which, if not separated or recovered, may contaminate streams and jeopardize the health of the surrounding people.