Argentina taps stranded gas for pioneering Bitcoin mining facility

Genesis Digital Assets Limited (GDA), a prominent global leader in Bitcoin mining, has collaborated with YPF Luz, a subsidiary of Argentina’s state-owned energy firm YPF, to establish an exceptional Bitcoin mining facility.

This plant utilizes oil field gas that is generated during drilling but remains unused due to economic or logistical constraints.

This initiative, located near Rincón de Los Sauces, within the Neuquén Province, utilizes waste materials to generate electrical energy. YPF, Equinor, and YPF Luz jointly manage the Bajo del Toro Thermal Power Plant.

The facility provides power to 1,200 Bitcoin miners, utilizing 7 MW of primary power and 1 MW of backup power.

Stranded gas, which is often released into the atmosphere and discarded as trash, is utilized to produce electricity for mining operations, thereby reducing the environmental footprint.

A recent working paper from MIT discovered that using methane in this way decreases carbon emissions by 25% to 63%. Reducing methane emissions is crucial due to its significant contribution to global warming.

The plant demonstrates the environmental advantages of Bitcoin mining and its contribution to community inclusion, as stated by Abdumalik Mirakhmedov, the founder of GDA.

Argentina is well-suited for such business endeavors because of its plentiful energy resources, favorable governance, and increasing acceptance of bitcoin as a result of inflation.

This initiative is in line with national energy objectives and showcases YPF Luz’s groundbreaking conversion of flare gas into electricity for bitcoin mining in 2022. GDA’s global presence has been significantly enhanced with this development, which now encompasses 20 data centers across many continents, boasting a total power capacity of over 500 MW.

Their endeavors to include renewable and discarded energy sources into Bitcoin mining bolster their position as leaders and pioneers in the field.