A major player in the Bitcoin mining industry, Genesis Digital Assets Limited (GDA), has teamed up with YPF Luz, an affiliate of the Argentinean state-owned energy firm YPF.
The two businessmen have teamed up to launch a Bitcoin mining operation that uses stranded gas from oil fields, an unusual energy source.
The purpose of this facility in Rincón de Los Sauces, Neuquén Province, is to divert trash from landfills and turn it into electricity that can power the supercomputers used in Bitcoin mining.
Housing 1,200 Bitcoin mining devices, the facility operates with a total power capacity of 7 megawatts (MW), backed up by an additional 1 MW of reserve power. A joint venture between YPF Luz, the Norwegian energy behemoth Equinor, and YPF itself, the Bajo del Toro Thermal Electricity Plant, provides the necessary electricity.
The stranded gas used to power this mining operation is natural gas that is released during oil extraction but not collected for later use, usually because transporting it from less productive or distant areas is too expensive.
A common solution to the disposal issue of stranded gas is to flare it into the sky, which releases a great deal of greenhouse gases. In addition to avoiding this damage to the environment, the new facility’s method also makes good use of a resource that was going to waste—the gas—by turning it into power.
Recently published research, including a working paper from MIT, says that using methods like the ones used by GDA to repurpose methane can cut carbon dioxide equivalent (CO2e) emissions by 25% to 63%. Given that methane is a potent greenhouse gas and accounts for approximately one-third of current global warming, this is critical.
“The launch of our first data center in South America is a key milestone in our regional diversification efforts,” said Abdumalik Mirakhmedov, Executive President and Founder of GDA, who praised the project’s operational and environmental benefits. “This is a great chance to demonstrate that Bitcoin mining is not only environmentally friendly but also completely integrated into local communities.”
The combination of Argentina’s favorable political atmosphere, large energy resources, and crypto-minded people makes the country an ideal setting for such ventures. The local public has become more dependent on cryptocurrencies as a safeguard against economic instability due to the country’s high inflation rates.
According to Martín Mandarano, CEO of YPF Luz, the project is strategically aligned with Argentina’s energy plans. “This collaboration with GDA enables us to provide an adaptable and sustainable flare gas use solution to YPF and Equinor, two companies dedicated to reducing the carbon footprint of their exploration activities,” Mandarano explained. He went on to say that YPF Luz was an industry trailblazer in 2022 when it came to using flare gas to power cryptocurrency mining, solidifying the company’s status as an innovator in cutting-edge energy solutions.
This initiative is a huge step forward for GDA, a leading Bitcoin mining company that now runs 20 data centers on an industrial scale spanning Europe, Central Asia, South America, and North America. With a worldwide power capacity of over 500 MW, GDA is at the forefront of driving innovation in the integration of renewable and waste-derived energy sources into the Bitcoin mining business.
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