Canadian oil and gasoline company Bengal Energy is making an attempt at Bitcoin (BTC) mining to utilize the untapped energy from its ‘gas wells’ in remote areas of Australia.
As per reports, Bengal Energy is gearing up for a pilot program wherein nearly 70 Bitcoin mining equipment will be set up inside a donga, a mining industry lingo for portable building. The equipments will be assembled near a series of previously no-longer functioning gas wells in the Cooper Basin.
In Brief:
- The firm procured the gas wells from local oil and gas extraction associates, Santos Energy and Bridgeport Energy.
- A trial donga will be provided with 66 mining rigs that produce nearly 0.005 BTC per day which amounts to nearly $235.
- Total income would be expected to reach from $2000 to $5000 per day.
Bengal Energy’s COO, Kai Eberspaecher, “We were basically looking at six months of having wells ready but without an outlet. We were dealing with stranded assets.”
He added that the firm procured the gas wells from its local oil and gas extraction associates, Santos Energy and Bridgeport Energy.
Eberspacher further explained that the recently acquired gas wells led to a problem for the energy company as they are “stranded wells.” This implies that although the firm can actually produce power from the gas on site, the existing distribution channels are too far away to reach.
Even though pipelines serving Bengal’s remote gas wells are currently under construction, the delays in completion of the project have been further aggravated by Covid-related supply chain issues.
Portable Bitcoin mining devices in dongas were thought of as a solution to the problem. A trial donga will be provided with 66 mining rigs that produce nearly 0.005 BTC per day which amounts to approximately $235.
As suggested by reports, if the trial turns out to be successful, Bengal Energy would try to proliferate its Bitcoin mining output by a factor of 10 to 20 times. As a result, total income would be expected to reach from $2000 to $5000 per day.
Recently, energy companies are increasingly turning to crypto mining to channel surplus energy. Oil giant ExxonMobil Corp too is running a pilot program to use excess natural gas that would have otherwise been flared off to power crypto mining operations.
