Flared, vented, and stranded gas assets were discussed as a way forward for bitcoin miners to deal with their ever-increasing electricity and energy requirements at a recent meeting of 200 oil and gas executives and bitcoin miners in Texas.
Hayden Griffin, a Texas native, was mentioned in a report on the subject. Haby III, a former surface landman, has been mining bitcoins exclusively for the last nine months. Haby co-founded a company that uses flared, vented, and stranded natural gas assets to power bitcoin mining setups.
An interesting confluence of events occurred this spring, with the Chinese government prohibiting crypto mining rigs. This could result in an influx of Chinese cryptocurrency miners to Houston to take advantage of the novel energy resource provided.
Given that bitcoin miners are interested in finding low-cost energy, Texas’ deregulated power grid, combined with low-cost power sources, is an ideal match.
Parker Lewis, a bitcoin supporter and Executive at Unchained Capital, a bitcoin financial services firm, was a key figure in connecting Texas’ energy generation capability with bitcoin miners. He wants Texas to be the world’s bitcoin capital, and he’s been traveling across the state to spread the word about bitcoin.
Methane combustion is critical in mining energy generation.
Previously, when oil and gas companies encountered a natural gas formation while drilling for oil, a pipeline was needed to deliver the gas. The gas could be sold on the same day if a pipeline was very close to the drilling site. If the drilling site is 20 miles from the nearest pipeline, it will be difficult to sell the discovered gas. Something has to be done.
One option is to release the gas into the atmosphere, which has negative consequences in terms of emissions. The other option is to “flare” it, which involves igniting the gas from outside. Flares emit CO2 and H2O instead of CH4 methane, and this process is 75-90 percent efficient.
The other option is to feed methane on-site through an engine or generator, which allows 100% of the methane to be combusted. This is the most cost-effective option.
In either case, bitcoin miners get what they want: cheap energy.