One of the most controversial aspects of cryptocurrencies have been the high levels of energy that are consumed for mining them. Cryptocurrencies, such as the pioneer, Bitcoin, have to be mined and this require massive amounts of energy. With climate change concerns taking a front seat, it is not surprising that a number of countries have gone as far as contemplating a complete ban on the proof-of-work (PoW) mining method. However, despite all of the talks, it still has not stopped people from engaging in crypto mining activities. One of the biggest problems associated with crypto mining is the fact that fossil fuels are used for facilitating it.
Since they are already in limited quantity and non-renewable, this has become a major concern. But, as aforementioned, this has not put a stop to crypto mining activities. As a matter of fact, it appears to be opposite because there has been an increase in mining. Earlier in the year, the hash rate for Bitcoin mining managed to reach a new all-time high. Crusoe Energy, a crypto mining firm located in Denver, recently disclosed that it had entered into a strategic partnership for cutting down the use of fossil fuel. Oman is a country in the Middle-East and is known for its gas resources, due to which they had partnered up with it.
Crusoe Energy intends to facilitate the crypto mining process by taking advantage of wasted fuel energy. Therefore, after its agreement with the government in Oman, it will set up a huge base of operations in the country. 21% of the gas produced in Oman is exported and by 2030, they aim to eliminate gas flaring completely. Hence, the Denver-based company has chosen Muscat, which is Oman’s capital, for setting up a new office. They will install the equipment that is required to access the gas waste from various sites. They are planning on setting up this equipment at well locations too.
The energy company disclosed that it had already conducted some workshops with some of Oman’s largest energy producers. OQ SAOC and Petroleum Development Oman are included in the list of producers. Chase Lockmiller, the chief executive of Crusoe, stated that they will launch the pilot phase of the project by the end of the year, or at the start of 2023. This partnership would also be beneficial for the government of Oman because it will help cut down gas flaring in the country.
Countries, such as Saudi Arabia, Libya, Iraq, Egypt, Algeria, along with Oman, are responsible for almost 90% of the gas flaring that occurs in the Arab region. As far as global gas flaring is concerned, these countries are responsible for 38% of the flaring. Statistics showed that 10% of Oman’s gas consumption was responsible for the flaring. Thus, they are looking for ways to solve this problem. Not only will this help Oman, but the partnership could also address the use of fossil fuels that are consumed in the process of crypto mining.