Miners from the USA earned $ 4 million on the extraction of bitcoin by burning natural gas

[Bowni]

23-year-old Texas residents Brent Whitehead and Matt Lochstroh founded a company that extracts bitcoins from oil fields. Writes about it CNBC.

Their shipping containers with thousands of ASIC miners are located in East Texas oil wells. Natural gas released during drilling is fed to generators, which convert it into electricity to power equipment.

According to a study by Denver-based Crusoe Energy Systems, this process reduces CO2-equivalent emissions by about 63% compared to continuous flaring.

The idea to go into mining first came to Whitehead and Lochstroch in 2019, when they were sophomores at Texas A&M University. They invested money from part-time school jobs in the creation of Giga Energy Solutions.

For many years, oil and gas companies have faced the challenge of discovering natural gas reservoirs while drilling wells. To be able to sell the found gas, an additional pipeline is needed. However, in remote fields, drillers have to flare it. At the same time, such an installation can emit up to 25% of methane into the atmosphere, polluting it.

Under such conditions, the use of associated gas to generate electricity becomes the most efficient - when it enters the engine or generator, 100% of methane burns without loss.

“As a child, I always saw gas flares and realized how wasteful it was. Our project allows not only to reduce emissions, but also to monetize gas,” said Brent Whitehead.

Giga Energy Solutions has signed deals with more than 20 oil and gas companies, four of which are publicly traded, he said. They are also in talks with sovereign wealth funds and aim to expand the business. During February 2022, six additional employees will join the team of 11 people.

Lochstroh and Whitehead are betting that bitcoin mining has the potential to change the economics of the energy industry.

“Bitcoin is not controlled by anyone, and you do not need to ask permission to use it,” said Matt Lochstroh.

Entrepreneurs estimate that in 2021, Giga Energy Solutions generated more than $4 million in revenue. By the end of 2022, they expect to earn over $20 million.

Lochstroh predicts that in the next phase, the energy companies themselves will start mining bitcoin.

Recall that in 2020, Gazprom Neft opened the possibility of using energy from the processing of associated gas at the field in Khanty-Mansiysk for bitcoin mining. Read more about this in the ForkLog special project.

In the same year, the Norwegian energy company Equinor Energy announced its readiness to send associated gas obtained from oil production at the Bakken field in the United States to electricity generation and bitcoin mining.

In a separate article, ForkLog analyzed whether it is profitable to mine bitcoin using solar energy.

[Vynnetanon]

Now there are several reasons why people do not sell crypto. First, because of the fear that the money will be lost. People believe that prices will rise very soon, and many do not understand what cryptocurrency is at all. Secondly, not all markets just fall. And although this is a high frequency forex, but if you see that the price is growing, then perhaps you will sell the crypt and get money that you can buy more.

[hanslkrause]

Dies ist ein guter Ort, wo Sie gut Zeit verbringen können. сookie сasino hat schnelle Auszahlungen, gute Bonuspolitik und einen hilfreichen Support. Eigentlich bin ich von diesem Betreiber richtig zufrieden und Sie können auch das alles selbst testen!

[HarryJohnson]

Have you just started investing? Or are you an experienced investor? Study more than 1000 articles about trading, investments and brokers. I'm new to this myself and I want some advice. For example I have already found an article https://www.pulse.ng/business/what-serv ... er/753tyj9. It seemed to me that the topic was quite interesting but difficult.