Bengal Energy mines Bitcoin with ‘stranded wells’ in the Australian outback

Canadian oil and gas company Bengal Energy is dipping its toes into bitcoin (Bitcoin) mining to harness the unused energy from its gas wells in the vast expanses of the Australian outback.

After According to a report by The Australian, Bengal Energy will conduct a pilot program in which about 70 bitcoin mining rigs will be set up in a portable building — known as a “donga” in the local mining industry — that will be assembled near a series from before abandoned gas wells in the Cooper Basin.

According to Kai Eberspächer, Bengal Energy’s chief operating officer, the company acquired the gas wells from its local oil and gas exploration partners Santos Energy and Bridgeport Energy.

Eberspacher added that the recently acquired gas wells pose an interesting problem for the energy company because they are so-called “stranded wells.” This means that while the company can technically produce electricity from the gas on-site, current distribution lines are too far away to reach.

A pipeline capable of serving Bengal’s remote gas wells is currently under construction, but delays in development have been further compounded by Covid-related supply chain issues.

“We basically completed wells for six months, but without an outlet. We were dealing with stranded assets.”

Portable bitcoin mining rigs in dongas have been found as a solution to the problem. A test donga will be equipped with 66 mining rigs that can generate around 0.005 BTC per day, which is around $235.

If the attempt is successful, Bengal Energy is reportedly looking to multiply its Bitcoin mining production by 10x to 20x, meaning total revenues could range from $2000 to $5000 per day.

Related: ExxonMobil uses surplus natural gas to mine crypto

Bengal Energy adds its name to a growing list of mining companies including ConocoPhilips and Exxon Mobileseeking to harness the full potential of typically wasted or stranded energy through portable bitcoin mining operations.

In response to the widespread criticism of bitcoin mining for environmental reasons, fossil fuel companies have increasingly struggled to find new ways to limit the harmful by-products of mining operations and use sustainable alternatives where possible.

The Bitcoin Mining Council estimates that a sustainable energy mix of 58.5% for the global industry in the fourth quarter of 2021. Miners in Norway are balanced Use of waste heat for wood drying.