Russian Oil Firm Builds Bitcoin Farm in Siberia



Odd Pivot

The Russian oil firm Gazpromneft just lately added an uncommon function to its oil drilling discipline in Siberia: A purposeful Bitcoin mining farm.

The corporate, which is the oil subsidiary of the Russian gasoline monopoly Gazprom, has began to make use of its extra carbon dioxide emissions as an vitality supply for crypto mining rigs, CoinDesk reports. It looks as if an uncommon mixture, however the concept is to reclaim wasted vitality into profitable cryptocurrency.

Closed Loop

The method of drilling for oil releases extra flammable gases — primarily methane and further pure gasoline that the ability can’t deal with. Usually, oil firms will burn that gasoline away to maintain it from leaking into the ambiance, which is why rigs typically spout giant flames. The concept is that burning the methane converts it to carbon dioxide, which is much less dangerous than methane so far as greenhouse gases go. However all that warmth and vitality simply goes to waste, so Gazpromneft’s plan is to utilize it by changing the surplus warmth into electrical energy and utilizing it to generate crypto, in keeping with CoinDesk.

It’s not the primary time this concept has come up. Bloomberg reported final yr that pure gasoline firms within the U.S. had already began to open related amenities, utilizing the surplus vitality from disposing of the gases to energy information facilities that included, sure, Bitcoin farms.

Timeshare Alternative

Whereas it supplies the infrastructure, the Russian vitality firm isn’t the one really doing the mining. As an alternative, mining firms can ship their gear to the Siberian facility to farm for their very own Bitcoin.

And thus far, the system seems to work: A Russian crypto mining agency utilizing the ability generated 1.8 Bitcoin in a single month — that’s about $50,000 at at present’s costs — in keeping with CoinDesk, burning via 49,500 cubic meters of extra gasoline within the course of.

READ MORE: Russian Oil Drilling Giant Opens a Crypto Mining Farm Run on Gas Energy [CoinDesk]

Extra on crypto mining: Bitcoin Is Going To Use As Much Electricity As Austria By The Year’s End



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