Argentina’s state-run energy provider, Fiscal Petroleum Yacimientos (YPF) has completed a new Bitcoin mining deal that will see the firm use associated gas to power 1,200 ASIC mining rigs in Patagonia. The agreement also involves the Norwegian oil and gas supplier Equinor and the Bitcoin mining firm Genesis Digital Assets Limited. YPF is South America’s third-largest oil producer with exploratory oil drilling projects in Patagonia that release associated gas. The YPF deal will see the firms use a mining farm named Central Térmica Bajo del Toro in Neuquén and channel the gas to a thermal power plant with a total installed capacity of 8 MW.
The collaboration between YPF, Equinor, and GDA aims to reduce greenhouse gas emissions, make efficient use of energy, and monetize associated gas that would have otherwise been vented into the atmosphere. YPF stated that the project would allow Bitcoin mining without affecting the availability of the national electrical energy network, contributing to a more sustainable solution. This move aligns with the global trend where companies are utilizing associated gas to power crypto mining rigs via thermal plants in order to reduce waste and emissions.
GDA’s Executive President, Abdumalik Mirakhmedov, emphasized Argentina’s importance for Bitcoin mining due to its abundance of energy sources and business-friendly environment. The opening of GDA’s first data center in South America marks an important step in the firm’s geographic diversification efforts. With over 20 Bitcoin mining farms worldwide, GDA operates more than 180,000 mining rigs in regions such as North America, Europe, and Central Asia. Mirakhmedov believes that Bitcoin mining can have a positive effect on the environment and be integrated into local communities.
Argentina’s top financial regulator has announced plans to supervise the nation’s crypto service providers, indicating increased scrutiny of the crypto industry in the region. Inflation-hit Argentina has been exploring alternative ways to utilize its energy resources, with YPF and other oil firms venturing into crypto mining since 2022. Equinor also announced plans to incorporate crypto mining operations in North Dakota in 2020, while Argentina-based Tecpetrol revealed plans for a crypto mining farm in the Vaca Muerta oil field in Western Argentina in September 2023.
The agreement between YPF, Equinor, and GDA highlights the growing trend of utilizing associated gas to power Bitcoin mining rigs, leading to more sustainable and environmentally friendly solutions. By harnessing the energy from gas that would have been otherwise wasted, the firms are able to reduce emissions and make efficient use of energy resources. As Argentina continues to explore opportunities in the crypto mining sector, collaborations between energy providers and mining firms provide a pathway for integrating crypto mining operations with traditional energy production processes.
