ExxonMobil Is Recycling Waste ‘Flare Gas’ To Offset Bitcoin Mining Emissions
It appears that ExxonMobil, the country’s top oil and gas producer, has started a pilot program with Crusoe Energy Systems to turn waste resources into useful energy, though the venture remains an open “secret.”
Anonymous sources told CNBC the company was using “flare gas,” or unwanted natural gas, to power thousands of Bitcoin miners, though the firm itself has kept tight-lipped about the situation.
Despite the widespread adoption of cryptocurrency, there have been concerns about the environmental costs of mining digital assets. In fact, last year, Tesla decided to halt Bitcoin payments on its electric cars due to the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions.”
CNBC spotted a brief mention of the project on the LinkedIn profile of Eric Obrock, an Exxon employee for 10 years.
It said that from February 2019 to January 2022 he “proposed and led the first successful commercial and technical demonstration of using Bitcoin Proof-of-Work mining as a viable alternative to natural gas flaring in the oil patch,” which could be the venture in question.
While Obrock couldn’t comment on the matter, it does seem that the program could be part of Exxon’s efforts to reduce its emission output, especially as it joined other oil companies in the World Bank’s ‘Zero Routine Flaring by 2030’ initiative this March.
The payoff may be even better than expected, as it has been speculated that mining cryptocurrencies using flare gas reduces carbon emissions by 63% when compared to routinely flaring natural gas.
As per Bloomberg, Exxon’s first such venture is located in North Dakota, and it could be looking to further its reach in Alaska, the Qua Iboe Terminal in Nigeria, and Vaca Muerta shale filed in Argentina.
“This is just a great way to bring that demand to the wasted energy and solve two problems at once,” said Cully Cavness, President of Crusoe Energy Systems.
“Solve the energy appetite of Bitcoin and solve the stranded energy, flare gas problem for the energy industry.”
[via CNBC and Bloomberg, cover image via Jonathan Weiss | Dreamstime.com]
