National Oil and Gas Company of Argentina works with crypto miners

The subdivision of YPF Luz, which specializes in alternative energy sources, is implementing a new project with a capacity of 1 MW within three months. It is located in the Vaca Muerta region, rich in gas and shale oil reserves.

Source: ypfluz.com

 According to the company's CEO Martin Mandarano, this project is not one of its kind. Experts are also currently working on an 8 MW solution localized in the Bajo del Toro area. 

We started developing a pilot version of this generation for cryptocurrency mining with the aim of ensuring sustainability and the business of burning natural gas, which cannot be used in the exploration and early production of an oil field,

Mandarano explains.

As the CEO explains, associated gas is produced together with oil at the initial stages of hydrocarbon fields development. It cannot be effectively captured and fed into the gas pipeline for subsequent conventional use.

YPF Luz offered to burn this gas for subsequent generation of electricity using generators installed in close proximity to the field. Not far from them, computer equipment of an international mining company was installed, which signed a contract with YPF for the energy supply.

Why were these areas picked? Mandarano emphasizes that the company seeks to act outside the box in order to bring supply and demand together in one location. Otherwise, with a significant distance between sources and consumers of electricity, the creation of a specialized infrastructure is required.

Following the shutdown of the well, YPF plans to relocate its mining and power generation facilities to other sites in the early stages of production.