A Canadian energy miner, Bengal Energy, says it will start mining Bitcoin (BTC) as a way to leverage untapped energy from its "stranded wells" in the Australian outback.
According to a report from The Australian, Bengal Energy will conduct a pilot program of about 70 Bitcoin Mining rigs set up inside a mobile building – the local mining industry called "donga" – that will be assembled near a series of previously decommissioned gas wells in the Cooper Basin.
Bengal Energy CEO Kai Eberspaecher said the company has acquired gas wells from local oil and gas exploration partners such as Santos Energy and Bridgeport Energy.
He added that recently acquired gas wells had caused an awkward situation for the energy company. While the company can technically produce electricity from on-site gas, the current distribution pipelines are too far away to reach. They said they spent six months researching and preparing but had no output. The organization is currently dealing with the problems that are stuck.
Mobile Bitcoin mining rigs using dongas have been launched as a solution to the problem. A test donga will be equipped with 66 mining rigs that can generate about 0.005 BTC per day, equivalent to about $235.
If the trial is successful, Bengal Energy could multiply its Bitcoin mining output by 10 to 20 times, meaning total income could reach between $2,000 and $5,000 per day.
Bengal Energy is increasingly involved in mining companies including ConocoPhillips and Exxon Mobil, which are looking to tap into the full potential of energy that is often wasted or trapped through mobile Bitcoin mining operations.
In the face of widely publicized criticism of bitcoin mining causing many environmental problems, fossil fuel companies are increasingly interested in finding new ways to limit the harmful byproducts of mining operations as well as exploit any sustainable alternatives where possible.
In Q4 2021, the Bitcoin Mining Council envisages that the global energy industry will have an increase of 58.5%. Norwegian miners even use waste heat to dry wood.
