The adoption of cryptocurrency in Europe has been influenced by U.S. sanctions against Russia. Gazpromneft, an oil company, is now looking for new ways to extract natural resources. This time it’s for cryptocurrency mining.
Gazpromneft is a Russian subsidiary of the oil and gas giant Gazprom. It announced on June 16 that it had signed a 2-year agreement with BitRiver to provide them with energy resources to support their cryptocurrency mining operations.
According to the St. Petersburg International Economic Forum information, the companies will collaborate to harness excess electricity from carbon dioxide (CO2) that was released by Gazprom’s oil extracting operations in Russia. Many companies must burn this carbon dioxide in the atmosphere. Gazpromneft could offer a better solution.
BitRiver Partner with Russia’s Gazpromneft
BitRiver’s founder and CEO, Igor Runets said that the company plans to build a Russian mining infrastructure with support from Gazpromneft. This infrastructure could produce up to 2 Gigawatts in electrical power, which is much more than what Riot Blockchain built in Texas.
BitRiver plans to build its own data centers to power-intensive computing, with power scaling up 2 [gigawatts], including petroleum gas. This will provide high and steady power consumption over the next two year.”
This would be the most ambitious project by BitRiver. BitRiver was the first cryptocurrency mining company to face sanctions from the United States as part of the new set of sanctions against Russia. The company released a statement one month later arguing that the U.S. allegations were “unfounded” and that it continued to operate as normal.
Greener Crypto Mining Operation
Due to their high energy consumption, Bitcoin and cryptocurrency mining has been a hot topic for conservationists for a few years. But, such efforts could help oil companies cut CO2 emissions.
Gazpromneft is not the first to enter the crypto mining industry. The company opened a cryptocurrency mining venue in late 2020 on one of their oil drilling sites in Siberia (Russia). However, they didn’t intend to run the mining farms, but rather to provide electricity to miners.
CNBC reports that ExxonMobil, the U.S. petroleum giant, has been working on a secret project to use Bitcoin mining to generate profits and eliminate CO2.
Initiatives like these could help change the global perception of crypto mining and make it part of the solution, rather than a problem.
Marla Brooks – Financial Analysis
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