Bitriver will mine cryptocurrency from gas left over from Gazprom Neft’s oil extraction.
Bitriver, a Russian crypto mining company, will mint digital currency using energy generated by Gazprom Neft’s related gas. The mining business will create the digital infrastructure at the oil producer’s wells in Russia as part of a new arrangement. Gazprom Neft, Russia’s third largest oil firm, will power data centres run by Bitriver, the country’s leading crypto mining company. Associated petroleum gas, a type of natural gas found near oil resources, will be used to generate the electricity required for the manufacturing of digital currency. According to RBC Crypto, which cited a Bitriver spokesperson, the agreement is part of a memorandum of cooperation inked by the two companies during the St. Petersburg International Economic Forum. The announcement comes after the Russian mining company was recently sanctioned by the United States.
The mining company will create digital infrastructure at Gazprom Neft’s oil fields and supply services based on computing hardware, according to the agreement, according to the report. Although digital currencies are not part of Gazprom Neft’s business strategy, the oil giant is looking for ways to make “useful use” of the related gas obtained during oil extraction. The infrastructure required to use associated gas for energy-intensive crypto asset mining has already been created at Gazprom Neft companies in three Russian areas. Gazprom Neft is the Russian state-controlled natural gas giant Gazprom’s oil division. The company was first reported to be offering bitcoin miners the ability to use leftover gas from oil drilling in January of last year. Oil-rich Oman has revealed plans to mine bitcoin using related gas, with the purpose of lowering harmful emissions into the atmosphere, where this gas is often vented or burned. The country purchased a $350-million investment in Crusoe Energy Systems Inc. in the United States, which specializes in crypto mining using excess fuel energy.