Gazpromneft, the oil subsidiary of Russian gas and global energy company Gazprom, provides the power to use excess natural gas to generate electricity for Bitcoin mining operations. The Russian company has allowed a small mining company to benefit from surplus natural gas by mining bitcoin on the oilfield site.

According to multiple reports, Gazpromneft, a Russian oil drilling subsidiary, enables Bitcoin miners to exploit the excess gas produced by oil drilling to mine leading cryptocurrencies.

A small mining business called Vekus was the first company to use Gazpromneft’s remaining gas, just like mining operations in North America, such as Greenidge Generation, Crusoe Energy Systems, EZ Blockchain and Upstream Data. Regional publication Forklog stated that Vekus installed a container with 150 Antminers. During the test, the team used “49,500 cubic meters of associated gas and produced 1.8 BTC.”

Yuri Kudryashov, Vekus’ CFO, commented on the project and said:

The largest share of mining costs is electricity costs. Therefore, Vekus is always looking for a reliable and cheap source of electricity. We are happy to respond to Gazprom’s proposal to organize a pilot project in one of these areas.

Gazprom provides electricity that has been processed with surplus natural gas, and Vycus’s electricity price is cheaper than buying it directly from the grid. The report also pointed out that Vekus also handled all equipment maintenance and statistical data collection. The Russian energy giant plans to invite more Bitcoin miners to the facility so that they can benefit from the excess natural gas.

Russian oil giant provides excess natural gas for operations that power Bitcoin mining equipment

Kudryashov pointed out that the biggest obstacle facing small-scale mining operations is coordination with oilfield employees and obtaining permits required for the operation.

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“The delivery of the equipment will not take too long. The main part of the work is preparing permits, coordinating actions with oil crews, installing equipment and connecting to the oil field’s grid.” Kudriasov emphasized.

Vekus executives further added:

At the same time, you must solve problems that do not arise in the city: establish the Internet, build hangars to protect equipment from dust, and organize the lives of people engaged in container maintenance.

The signs that Bitcoin miners are using excessive natural gas and renewable energy to mine cryptocurrencies underpin the fact that the Bitcoin mining industry is moving toward industrialization. Just as Gazpromneft provides opportunities for miners to exploit excess natural gas to mine Bitcoin, New York-based Greenidge Generation also provided the same type of service last year.

However, Greenidge’s operations are different because it hosts its own 7,000 Bitcoin miners, but in April 2020, the “behind” Bitcoin mining operation sold 106 petahash hashes to undisclosed buyers force.

What do you think about Gazpromneft allowing Bitcoin miners to benefit from the excess natural gas in Russian oil fields? Let us know your thoughts on this topic in the comments section below.

Tags in this story

Bitcoin, Bitcoin (BTC), Bitcoin miner, Bitcoin mining, BTC mining, Crusoe energy system, excess natural gas, Gazprom, Gazpromneft, Greenidge Generation, miners, mining operations, oil drilling, renewable energy, Russia, Russian, Russian oil field, upstream data, Vykus, Yuri Kudriasov

Picture Credits: Shutterstock, Pixabay, Wiki Commons, Gazpromneft,

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