Bengal Energy plans to mine bitcoins from abandoned gas wells in Australia’s outback
Bengal Energy, a Canadian oil and gas miner, is planning to undertake a pilot operation using portable Bitcoin mining machines to access previously “stranded” gas wells.
Bengal Energy, a Canadian oil and gas business, is dabbling with Bitcoin (BTC) mining as a means of exploiting untapped energy from its gas wells in the deep regions of Australia’s outback.
Bengal Energy is planned to execute a trial programme in which about 70 Bitcoin mining rigs will be housed within a moveable structure dubbed a “donga” in the local mining business. The building will be built near a number of previously inactive gas wells in the Cooper Basin.
Bengal Energy bought the gas wells from its local oil and gas extraction partners, Santos Energy and Bridgeport Energy, according to chief operating officer Kai Eberspaecher.
Eberspacher stated that the newly purchased gas wells presented a unique challenge for the energy firm due to their status as “stranded wells.” This implies that, although the firm may theoretically generate electricity from the gas on-site, the company cannot connect to the existing distribution pipes.
A pipeline to serve Bengal’s distant gas wells is presently being built, but delays have been worsened by Covid-related supply chain concerns.
“We were essentially looking at a six-month period during which we would have wells prepared but without an outlet. We were tasked with the task of dealing with stranded assets.”
A solution to the issue was discovered in the form of portable Bitcoin mining machines in dongas. A trial donga will be equipped with 66 mining machines capable of producing around 0.005 BTC per day, or approximately $235.
Bengal Energy is apparently attempting to double its Bitcoin mining production by a factor of 10 to 20, implying that total revenue might range between $2000 and $5000 per day if the experiment is successful.
Bengal Energy joins a growing number of mining corporations, including ConocoPhilips and Exxon Mobil, who are attempting to maximise the value of often lost or stranded energy by operating portable Bitcoin mining facilities.
In response to widespread environmental concerns of Bitcoin mining, fossil fuel businesses have grown more concerned with developing innovative methods to prevent the hazardous effects of mining operations and using any sustainable alternatives available.
The Bitcoin Mining Council anticipated that the worldwide industry’s sustainable energy mix will be 58.5 percent in the fourth quarter of 2021. In Norway, miners are even using waste heat to dry timber.