An investigation on a new initiative to mine Bitcoin (BTC) with associated gas is being undertaken by the Russian authorities. According to reports, Vasiliy, the Deputy Minister of Trade and Industry in Russia has submitted a request to the head of the banking system in Russia and the Ministry of Technological Infrastructure to use the nation’s oil field machinery for crypto mining purposes.
An article by Kommersant states that the application was submitted on the 7th of September and asks the authorities to provide comments on a project that was originally conceived by regional crude and gas businesses. The companies particularly sought to use associated gas to run neighboring data centers that would be used for mining Bitcoin. However, due to the high expense of building a modern gas system, this form of energy resource is frequently lost by flaring, which is the process of simply burning off the excess gas produced by oil drilling operations.
Mining Will Help With Emissions Problems
In conjunction with drilling for oil, related gas is produced as a byproduct; however, due to the prohibitive cost of installing suitable gas facilities, it is frequently squandered by flaring, in which the surplus gas is just flared away. The Russian authorities have tried to decrease exhaust emissions in an attempt to minimize pollution but have been unable to achieve its goals due to a lack of critical technology in place, however, mining will help with the reduction of flaring and as an extension gas emissions.
According to the statement by Shpak, using fossil fuel for Bitcoin mining might increase the efficiency of oil and gas utilization in thermal generating by utilizing “hybrid units of virtual currency collection.” A Russian oil company, as per Kommersant, is involved in the initiative, which is trying to expand its crypto mining operation as a result of an ambiguous legal environment.
A Majority Of Gazprom Neft’s Shares Controlled by Russian Authorities
Gazprom Neft, Russia’s third-largest petroleum corporation is reputedly the only corporation to have been engaged in such an initiative, with the company producing 1.8 billion Bitcoins in just a month of last year’s operations. The Russian authorities, via the Federal Department for State Asset Administration and Rosneftegaz, control the majority of the company’s shares. In response to a reporter’s seeking comment, Gazprom Neft did not initially answer.
Bitcoin processing has been hailed as a solution to the excessive habit of flaring related gas, which has been criticized by both businessmen and policymakers. US Senator Ted Cruz has stated that there is “an incredible chance for Bitcoin […] to collect that energy rather than wasting it,” according to the Wall Street Journal.