Denver-based Crusoe Energy will help the Middle East country reduce associated gas flaring with a pilot planned for late 2022.
As the heated debate over the ethical aspects of using fossil fuels in cryptocurrency mining remains one of the key issues for the industry, an unexpected partnership between a Denver-based mining company and the government of a gas-rich Middle East country opens up new horizons. for the positive role of cryptography in reducing fossil fuel waste.
On Wednesday, June 1, Bloomberg reported that Crusoe Energy, an operator that converts fuel energy into computing power for cryptocurrency mining, will begin operations in Oman, a country that exports 21% of its gas and has pledged to to get away from flaring in 2030. .
The American company will open an office in Muscat, the country’s capital, and install its gas tailings collection equipment at drilling sites. He has already held a seminar with Oman’s largest energy producers, OQ SAOC and Petroleum Development Oman. The first pilot will be operational by the end of this year or early 2023, according to Crusoe CEO Chase Lochmiller.
The Oman government’s interest in the partnership stems from the goal of reducing gas flaring in the country – the burning of excess combustible gas in the production process. Along with Algeria, Iraq, Libya, Egypt and Saudi Arabia, Oman accounts for 90% of flaring in the Arab region and 38% of global flaring in the region itself. In 2018, the United Nations Economic and Social Commission for Western Asia estimated, that 10% of Oman’s total gas consumption went to flaring.
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In an official statement, Lohmiller highlighted his company’s mission to establish a presence in the Middle East and North Africa to support local governments in their fight against flaring:
“We are looking for support from countries that are actively trying to resolve flare issues.”
In March, media reported that Exxon Mobil had partnered with Crusoe to pilot a bitcoin mining project in North Dakota’s Bakken Shale Basin. However, this information has not been confirmed by the companies.
Cointelegraph reached out to Crusoe Energy for more information, the post will be updated later.