Argentina’s state-run energy provider, Fiscal Petroleum Yacimientos (YPF), has entered into a new Bitcoin mining agreement that will involve using associated gas to power 1,200 ASIC mining rigs in Patagonia. The deal also includes Equinor, a Norwegian oil and gas supplier, and the Bitcoin mining firm Genesis Digital Assets Limited (GDA). YPF, which is South America’s third-largest oil producer, has several exploratory oil drilling projects in Patagonia, which often release associated gas. The agreement will see the gas channeled to a thermal power plant with a total installed capacity of 8 MW, with the goal of reducing greenhouse gas emissions and monetizing associated gas.
The Argentinian government-owned firm YPF aims to make use of associated gas that would have otherwise been vented into the atmosphere through the Bitcoin mining project. YPF expressed that the project would allow for Bitcoin mining without affecting the availability of the national electrical energy network and contribute to a more sustainable solution. This approach is in line with the growing trend seen in many parts of the world, where companies are using associated gas to power crypto mining rigs via thermal plants, thus reducing waste and increasing efficiency.
GDA’s Executive President Abdumalik Mirakhmedov highlighted Argentina as an important country for Bitcoin mining due to its abundance of energy sources and business-friendly environment. The company, with around 20 Bitcoin mining farms worldwide, sees the opening of their first data center in South America as a significant step in their geographic diversification efforts. GDA believes that Bitcoin mining can have a positive effect on the environment and can be fully integrated into local communities, and that the project in Argentina’s Patagonia is a testament to this.
YPF has been working with crypto mining players since 2012 and Equinor has also announced plans to incorporate crypto mining operations in North Dakota since 2020. This move by YPF to use associated gas for Bitcoin mining is not the nation’s first, as fellow Argentina-based oil explorer Tecpetrol had announced plans to operate a crypto mining farm in Western Argentina’s Vaca Muerta oil field in September 2023. The agreement between YPF, Equinor, and GDA to utilize associated gas for Bitcoin mining reflects a growing trend among oil and gas companies to find innovative and environmentally friendly solutions for utilizing by-products of their operations.
The Bitcoin mining project in Patagonia represents a significant step towards reducing waste, reducing greenhouse gas emissions, and making more efficient use of energy resources. By repurposing associated gas to power mining rigs, the project is helping to mitigate the risks associated with the energy-intensive Bitcoin mining industry while contributing to a more sustainable energy solution. GDA’s entry into the South American market is seen as a positive development for the mining firm, and the use of associated gas for Bitcoin mining is an innovative and environmentally friendly approach that demonstrates the potential for collaboration between the energy and crypto industries.
