The Argentinian state-owned energy giant Fiscal Petroleum Yacimientos (YPF) and its affiliate YPF Luz have launched a new business in the Bitcoin mining industry by placing the associated gas from oil extraction to power Bitcoin mining operations with a new arrangement. This initiative, in partnership with the Norwegian oil and gas supplier Equinor and GDA, one of the well-known Bitcoin mining firms, demonstrates the sustainability of the cryptocurrency mining industry.
The agreement focuses on excess gas from oil explorations in Patagonia, particularly from some YPF exploiting projects. Conventionally, this gas is sent to the atmosphere through flaring with a greenhouse effect. Nevertheless, this quantum deal is expected to clean the gas and send it directly to fuel around 1,200 ASIC mining rigs at the Central Termica Bajo del Toro mining farm in Rincon de los Sauces, Neuquen. This farm will boast an installed capacity of 8 MW.
YPF, being nationalized in 2012 and now one of the country’s top energy suppliers, is achieving solid progress in environmental stewardship as it decreases greenhouse gas emissions through energy saving and waste-to-wealth conversion.
The project is expected to have significant environmental effects in that it uses gas that would have otherwise been released into the atmosphere, thereby mitigating the risks of greenhouse gas emissions from Bitcoin mining. An official from YPF, the company behind the project, declared: “The mining process will not cause any trouble to the availability of the national electrical energy network nor will it affect the environmentally sustainable solution.”
This is not the first time Argentina has engaged in cryptocurrency mining. YPF started using associated gas to power mining rigs in 2022, the most recent eco-aware mining practice. Not only that but in 2020, Equinor also revealed strategies to incorporate crypto mining into the oil field Bakken in North Dakota. Also, in September 2023, the Argentinian oil company Tecpetrol announced the implementation of a cryptocurrency mining facility in the Vaca Muerta oil field, which is located in the Western region.
With this latest Patagonia project, GDA makes South America its first and confirms the importance of sustainable mining techniques for the company. During the event, Abdumalik Mirakhmedov, the Executive President of GDA, mentioned that Argentina is a popular destination for Bitcoin mining due to its many energy resources and friendly business environment. The inauguration of the first data center in South America is a major achievement in the diversification process we undertook. This will be our chance to demonstrate that Bitcoin mining may be environmentally beneficial and fully compliant with local communities”, he added.
The company has about 20 Bitcoin mining sites in North America, Europe, and Central Asia. In total, such offices service more than 180,000 mining rigs globally. This strategic move into Argentina will dramatically consolidate its control as a pioneer manufacturer of Bitcoin in the global industry arena, proving to be an innovative approach to merging energy production and cryptocurrency mining within a sustainable framework.