Exxon pilot project uses wasted flare gas for crypto mining: report

Mining • March 24, 2022, 5:20PM EDT

UPDATED: March 25, 2022, 8:24AM EDT

Exxon is reportedly diverting some of the natural gas it has no use for to power crypto mining operations, with a pilot program in North Dakota.

The oil and gas behemoth has partnered with Crusoe Energy Systems to convert the gas into power mobile generators used for mining operations on-site, sources close to the project told Bloomberg.

The project launched in January of last year and the company is already looking to set up similar ones in Alaska, Nigeria, Argentina, Guyana and Germany, the publication also reported.

Projects like this one have been touted as a win-win situation. On one side, excess natural gas that would have been burned off via the flaring process is put to use and, on the other, energy-intensive crypto mining operations find a power source that would have been wasted otherwise.

Back in 2019, Crusoe Energy Systems got financing from big names including KCK Group and Winklevoss Capital to fund projects including a bitcoin mining facility using gas that would have been flared.

A report from October of last year indicated that Russian regulators were likewise considering the use of wasted flare gas for crypto mining.

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Catarina is a reporter for The Block based in New York City. Before joining the team, she covered local news at Patch.com and at the New York Daily News. She started her career in Lisbon, Portugal, where she worked for publications such as Público and Sábado. She graduated from NYU with a MA in Journalism. Feel free to email any comments or tips to [email protected] or to reach out on Twitter (@catarinalsm).