Mining business Bengal Energy of Canada is preparing to launch a trial project that will allow previously stranded gas wells to be accessed using portable Bitcoin mining rigs. Canadian oil and gas company Bengal Energy, which has gas wells in the Australian outback, is testing the mining of bitcoin (BTC) with the use of Bitcoin mining software.
Many previously dormant gas wells in the Cooper Basin near Bengal Energy’s proposed pilot program for installing roughly 70 Bitcoin mining rigs will be constructed around the “donga,” as it is known in the mining community. Chief operating officer Kai Eberspaecher reports that oil and gas partners Santos Energy and Bridgeport Energy sold their gas wells to Bengal Energy.
Eberspaecher and his firm confront a unique challenge since the freshly purchased gas wells are known as “stranded wells.” Because of present pipeline lengths, it is difficult for a corporation to create electricity on-site using natural gas. Gas from Bengal’s distant gas wells will be transported through a pipeline now under construction.
“We were basically looking at six months of having wells ready but without an outlet. We were dealing with stranded assets.”
This problem was solved using dongas-powered portable Bitcoin mining equipment. Sixty-six mining rigs, each capable of making 0.005 BTC per day, or around $235, will be deployed. If the pilot project is a success, Bengal Energy plans to increase its Bitcoin mining production by 10–20%, creating an additional $2000–5000 per day in revenue.
A rising number of oil firms aim to exploit the energy that is often squandered or stranded to power mobile Bitcoin mining operations. Fossil fuel corporations have been increasingly interested in finding inventive ways to lessen the environmental impact of mining operations and adopting any sustainable alternatives when feasible in response to the significant ecological criticism of Bitcoin mining.