According to CEO, Martin Mandarano, “We started to develop this generation pilot for cryptocurrency mining with a vision of sustainability and business from flare natural gas...”
YPF, an Argentine state-owned energy company, is set to supply power to a yet-to-mention international crypto mining company.
YPF Luz, a subsidiary of YPF, is in charge of the project planning. This project will power Bitcoin mining operations with residual gas in the country.
YPF Luz started a 1 megawatt (MW) pilot operation three months ago. This will enable it to supply power generated from waste gas during oil production.
The initiative is currently being tested in Vaca Muerta, one of the country’s biggest oil fields. It is located in Southern Argentina and is known for its shale oil and gas resources.
This plan to mine cryptocurrencies is part of YPF's agenda to utilize the by-products from the initial stages of oil well drilling. These residual gases in the oil field cannot be moved to other sites for use. Hence, the only way to make it work is to attract interested parties to the zone.
YPF Luz already has a list of customers paying for this power. The power is produced on-site using generators installed at the oil well drilling phase.
In a statement by Martin Mandarano, CEO of YPF Luz, he said,
“We started to develop this generation pilot for cryptocurrency mining with a vision of sustainability and business from flare natural gas, which cannot be harnessed during exploration and at the beginning of the production of an oil field.”
The payment mode for this power by customers varies from time to time due to various factors. Sometimes, payment is made based on the asset's price mined on the international market or the price fixed by the company.
It is worth knowing that YPF plans to launch another pilot project, which will be eight times bigger before the year runs out.
CEO Mandarano announced this in his statement,
“This first pilot, which is already operating, operates with 1 [megawatt] of generation, and a second project is being developed simultaneously to start operating before the end of the year, with about 8 MW, in the Bajo del Toro area.”
