Canadian oil and gas company Bengal Energy is diving into Bitcoin (BTC) mining to harness untapped energy from gas wells in remote parts of an Australian field.
According to The Australian, Bengal Energy is set to implement a pilot program in which about 70 bitcoin miners will be installed inside a portable building known to the local mining industry as a “dunga” that will be assembled. Next to a number of previously decommissioned gas wells in the Cooper Basin.
The company has purchased gas wells from its local oil and gas partners, Santos Energy and Bridgeport Energy, according to Bengal Energy COO Kay Ebersbacher.
Eberspächer added that the newly acquired gas wells present an interesting challenge for the energy company because they are known as “stretched wells”. This means that while it is technically possible for a company to produce electricity from gas locally, today’s distribution pipelines are a long way off.
A pipeline is currently under construction that will be able to exploit remote gas wells in Bengal. However, development delays are exacerbated by supply chain issues related to COVID-19.
Initially, we expected the wells to be completed for six months, but there was no production. We were dealing with abandoned assets.”
Dong mobile bitcoin mining rigs have come under attack as a solution to the problem. Donga Testing will be equipped with 66 mining rigs capable of generating around 0.005 bitcoins per day, which is approximately $235 USD.
If the lawsuit succeeds, Bengal Energy is said to be trying to increase bitcoin mining 10 to 20 times, which means total revenue could reach $2,000 to $5,000 per day.
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Bengal Energy is adding its name to a growing list of mining companies, including ConocoPhilips and Exxon Mobil, that are looking to harness the full potential of energy commonly wasted or used through mobile bitcoin mining.
In response to the criticism that has been published about bitcoin mining on environmental grounds, fossil fuel companies are increasingly interested in finding new ways to reduce harmful byproducts of mining, as well as using sustainable alternatives where possible.
The Bitcoin Mining Council estimated a sustainable energy consumption pattern of 58.5% for the global industry in the last quarter of 2021. Even miners in Norway are using waste heat to dry wood.