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Even though the Russian government is skeptical about the legalization of cryptocurrency trading and payments, it continues to form links with big players in the crypto mining industry.
Gazprom Neft, a gas behemoth owned by Russia, has collaborated with the largest crypto-mining colocation services supplier in Russia, BitRiver. BitRiver offers hosting services for major crypto mining operations. As per the announcement made by the company on June 16, Gazprom will be offering data centers in partnership with BitRiver, while the associated petroleum gas will be responsible for the electricity generated.
BitRiver will also be creating a digital infrastructure taking the oil fields as the base. The oil fields would be where Gazprom provides crypto mining services from the flare gas.
Vadim Yakovlev, the deputy CEO of Gazprom, pressed on the fact that digital assets are not envisioned in the business model of Gazprom. The purpose of the gas giant is to optimize how the energy resources are used to enable renewable energy through the facilitation of “new ways of beneficial use of associated petroleum gas.”
The deputy noted that an essential component of Gazprom Neft’sNeft’s ESG policy is reducing our carbon footprint. Further stating that they combine competencies with partners and technologies, they curate the best industry practices ensuring that natural resources are used efficiently and environmentally friendly.
Gazprom is among the biggest oil and gas firms in Russia. In addition, it is also the biggest gas supplier for the European Union. As per the reports from 2019, the oil firm was ranked as the third-largest producer of carbon emissions.
The crypto mining projects powered by flare gas especially have relevance, especially while working in new oil fields that do not have any established gas transmission infrastructure. Another option is to establish more such developments in remote fields in Siberian regions. This is because these fields have associations with surplus electricity and unprofitable flare gas logistics.
Igor Runets, the founder and CEO of BitRiver, stated that the latest collaboration with Gazprom comes under the zealous plan to expand its total power capacity to 2 gigawatts in the next two years.
In October 2021, the government of Russia gave a thought to mining Bitcoin with associated petroleum gas.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
