Providing Gas Flare for BTC Mining, Russia Forms Partnership with BitRiver

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ACCURATE.CO The Russian government continues to maintain relationships with major players in the cryptocurrency mining industry although it remains skeptical about legalizing cryptocurrency trading and payments.

Launching from Cointelegraph, Monday (20/6/2022) Russian state-owned gas giant Gazprom Neft has entered into a partnership with BitRiver, Russia’s largest cryptocurrency mining collocation service supplier that provides hosting services for major crypto mining operations.

Gazprom will provide BitRiver partner data centers with electricity generated from petroleum gas with the company officially announcing on June 16.

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As part of the collaboration, BitRiver will develop a digital infrastructure based on the oilfield that Gazprom provides for crypto mining services from gas flares.

Gazprom’s first deputy CEO Vadim Yakovlev emphasized that Gazprom’s business model, itself, does not envision working with digital assets. The gas giant is aiming to optimize the use of renewable energy-enabled energy resources by enabling “new ways for the beneficial use of petroleum-related gas,” he noted.

“Reducing our carbon footprint is an important component of Gazprom Neft’s ESG policy. By combining technology and competencies with partners, we create industry best practices for the efficient and environmentally friendly use of natural resources,” said Yakolev.

Gazprom is one of the largest oil and gas companies in Russia and also one of the largest gas suppliers to the European Union. The oil giant was reportedly ranked as the world’s third largest producer of carbon emissions in 2019.

According to the announcement, flare gas-powered crypto mining projects are especially relevant when working in new oil fields that do not have a well-established gas transmission infrastructure. Another option is to organize such developments in remote oil fields in the Siberian region as those fields are associated with excess electricity and unprofitable gas flaring logistics.

BitRiver founder and CEO Igor Runets noted that the new partnership with Gazprom is part of the company’s ambitious plan to increase its total power capacity to 2 gigawatts in the next two years.

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