Argentinian Oil Company YPF Luz Powers Bitcoin Mining
YPF Luz, a subsidiary of the Argentine state oil giant YPF, is now testing the use of residual gas to power Bitcoin mining operations. The effort, which is presently being tried in Vaca Muerta, one of the country’s largest oil fields, aims to capitalize on this byproduct of the earliest phases of oil well drilling.
YPF Luz is experimenting with using flare or leftover gas to power Bitcoin mining facilities. This operation, which has been functioning for three months in Vaca Muerta, a big oil field in the nation, aims to capitalize on gas that would otherwise be burnt.
Because the gas in these oil fields cannot be transported to other locations for usage, the only option is to lure interested companies to the zone. YPF Luz already has a number of clients that pay for this type of electricity, which is generated on-site using generators placed during the oil well drilling process.
The CEO of YPF Luz, Martin Mandarano, said:
“This first pilot, which is already operating, operates with 1 megawatt of generation and a second project is being developed simultaneously to start operating before the end of the year, with about 8 MW, in the Bajo del Toro area.
We began to develop this generation pilot for cryptocurrency mining with a vision of sustainability and business from flared natural gas, which cannot be used when exploration is being carried out and at the beginning of production of an oil field.”
Because of the nature of the activities, the equipment must be relocated after the drilling of the well in which the generator is installed is completed. However, this is not an issue because the equipment is portable and modular, allowing it to be rapidly transported to different sites.
Other large mining businesses, such as Bitfarms, which just began operations in Rio Cuarto, have already established a foothold in Argentina.
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