Genesis Digital Assets Limited (GDA), a leading force in the global bitcoin mining sector, has bitcoin-mining-center-in-argentina-powered-with-repurposed-flared-gas/” target=”_blank” rel=”noopener nofollow”>associated with YPF Luz, a subsidiary of the Argentine state energy company YPF. Together, both partners have established a new bitcoin mining facility that takes advantage of an innovative energy resource: stranded gas from oil fields.
Argentina will mine bitcoin
This facility, located in Rincón de Los Sauces, in the province of Neuquén, is designed to transform what would otherwise be waste into a powerful source of energy for high-intensity computing processes associated with bitcoin mining.
The facility operates with a total power capacity of 7 megawatts (MW), supported by an additional 1 MW of backup power, and houses 1,200 bitcoin mining machines. It is powered by the Bajo del Toro Thermal Power Plant, managed in collaboration by YPF, the Norwegian energy giant Equinor and YPF Luz.
The energy for this mining operation comes from stranded gas: natural gas that is released during oil extraction but is not captured for sale or distribution, usually because it is not economically viable to transport it from remote or marginally productive fields.
Stranded gas often poses a disposal problem as it is often burned in the atmosphere, contributing significantly to greenhouse gas emissions. The new facility's approach not only prevents this environmental damage but also uses the gas to generate electricity, making productive use of a previously wasted resource.
According to recent studies, including an MIT working paper, reusing methane using techniques such as those employed by GDA can reduce carbon dioxide equivalent (CO2e) emissions by 25% to 63%. This is essential because methane is a powerful greenhouse gas, responsible for approximately a third of current global warming.
Abdumalik Mirakhmedov, CEO and founder of GDA, emphasized the environmental and operational advantages of the project in a statement: “The opening of our first data center in South America is an important step in our geographic diversification efforts. “This will be yet another opportunity to show the world that bitcoin mining can have a positive effect on the environment and can be fully integrated into local communities.”
Strategic implications for Argentina and beyond
Argentina presents a unique landscape for such efforts due to its significant energy resources, favorable political climate, and a strong crypto spirit among its population. The country has been experiencing high rates of inflation, which has increased the local population's dependence on cryptocurrencies as a hedge against economic instability.
Martín Mandarano, general director of YPF Luz, also highlighted the strategic fit of the project with Argentina's energy policies. “This project with GDA allows us to bring YPF and Equinor, two companies committed to reducing the carbon footprint of their exploration activities, an adaptable and sustainable solution for the use of combustion gas,” said Mandarano. He further highlighted that YPF Luz had been a pioneer in generating electricity for cryptocurrency mining from combustion gas in 2022, positioning the company as a leader in innovative energy solutions.
The project also marks a major point of expansion for GDA, which operates 20 industrial-scale data centers in North America, South America, Europe and Central Asia, further cementing its position as a major player in the bitcoin mining industry. With total energy capacity exceeding 500 MW globally, GDA continues to drive innovation in the integration of renewable and waste-derived energy sources into the btc mining sector.
At the time of publication, btc was trading at $62,406.
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