Oil Companies In The Middle East To Use Excess Gas For Bitcoin Mining: Report2 min readReading Time: 2 minutes
Crusoe, a Denver-based bitcoin mining company, is deploying equipment to capture flared gasses in Muscat, Oman.
Crusoe, a bitcoin mining company, is deploying equipment in Muscat, Oman to capture flared gas.The Oman Investment Authority in the Middle East was part of an April funding round that saw Crusoe raise $350 million. The MENA region accounts for 38% of the world’s flared gasses.
Crusoe Energy, a U.S. firm that specializes in using excess natural gas for bitcoin mining, will begin deploying generators and mining equipment to capture flared gas in Muscat, Oman as the Middle East looks to cut its emissions, according to a report from Bloomberg.
Chase Lochmiller, Crusoe’s CEO, explained in the report that the company felt it was important to have a presence in the Middle East and North African (MENA) region as the location accounts for 38% of the world’s burning of excess natural gas from oil wells.
“Having the buy-in from nations that are actively trying to solve the flaring issues is what we are looking for,” Lochmiller said.
The Oman Investment Authority was part of a $505 million funding round for Crusoe this past April. Ismail Ibrahim Al-Harthi, senior manager of technology investments at Oman Investment Authority, reportedly explained the stake in Crusoe did not represent the size of stakes in the company and Crusoe also declined to comment on the terms of the deal.
The pilot for the first Middle Eastern deployment is expected to launch by the end of the year or early 2023. Lochmiller also reassured that while the state of financial markets and bitcoin “certainly has some impact on our top-line revenue, it doesn’t impact any plans for growth and expansion.”
“Oman is committed to reduce greenhouse gases in line with the Paris climate agreement,” Al-Harthi said in an email with Bloomberg.
The Oman government reportedly signed on with the World Bank to end routine flaring by 2030, and invested in Crusoe last year. Oman increased its stake in the company this past April, Al-Harthi reportedly stated in a phone interview.