In a groundbreaking move, Genesis Digital Assets Limited (GDA), a powerhouse in global Bitcoin mining, has forged a strategic alliance with YPF Luz, a branch of Argentina’s national energy firm YPF. The collaboration has given rise to a cutting-edge Bitcoin mining facility in Rincón de Los Sauces, Neuquén province. This facility is engineered to convert otherwise neglected gas, a byproduct of oil extraction, into a potent source of energy for high-demand Bitcoin mining activities.
The installation boasts a robust total power capacity of 7 megawatts (MW), supplemented by an additional 1 MW of reserve power, and is equipped with 1,200 Bitcoin mining rigs. This venture is fueled by the Bajo del Toro Thermal Power Plant, managed collectively by YPF, Norwegian powerhouse Equinor, and YPF Luz.
The operation utilizes what is known as stranded gas, which is natural gas released during the extraction process but typically not harvested due to economic and logistical constraints of transporting it from isolated or marginally productive sites.
Conventionally, stranded gas has been a significant environmental headache, often burned off and released into the atmosphere, adding substantially to greenhouse gas emissions. However, this new methodology not only mitigates environmental degradation but also harnesses the gas to generate electricity, making effective use of a resource that would otherwise go to waste.
Research, including findings from an MIT working paper, suggests that repurposing methane in this manner can cut CO2 equivalent emissions by 25% to 63%. This reduction is crucial given methane’s significant impact on global warming, accounting for nearly a third of the current rate.
Abdumalik Mirakhmedov, the visionary leader of GDA, highlighted the dual benefits of this initiative, noting, “Launching our first data center in South America marks a pivotal expansion in our strategy. This facility not only showcases our commitment to environmental responsibility but also our ability to integrate seamlessly with local communities.”
Impact and Prospects in Argentina
Argentina’s unique combination of abundant energy resources, a supportive political environment, and a robust crypto culture makes it an ideal setting for such innovative projects. The nation’s ongoing battle with high inflation has driven its citizens to increasingly depend on cryptocurrencies to stabilize their economic circumstances.
Martín Mandarano, CEO of YPF Luz, commented on the alignment of this project with national energy strategies, stating, “Our collaboration with GDA brings our combined expertise in reducing the carbon footprint of our operations to the forefront, offering a scalable and sustainable solution for using flare gas.”
Previously, YPF Luz was the pioneer in generating electricity for cryptocurrency mining using flare gas in 2022, reinforcing its leadership in inventive energy solutions.
This project is a key milestone in GDA’s expansion, adding to its portfolio of 20 industrial-scale data centers across the globe and affirming its role as a significant influencer in the Bitcoin mining landscape. With a total capacity of over 500 MW worldwide, GDA continues to spearhead the integration of sustainable and recycled energy resources into the realm of Bitcoin mining.
By Andrej Kovacevic
Updated on 14th July 2024