Digital Assets: Bengal Energy Will Mine Crypto From Stranded Gas Using Rigs Installed In Portable ‘Dongas’

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Bengal Energy is a Canadian oil and gas company that owns gas wells in the Cooper Basin, Australia.

“Stranded” gas, or gas that cannot reach a distribution pipeline, must necessarily be flared off by energy companies. This is a huge waste of energy that is extremely harmful for the environment. Bengal Energy (TSX: BNG) plans to use the gas to generate energy that will drive crypto mining rigs housed inside makeshift, portable housing (“dongas”) located close to the gas source. A win-win situation, because it generates revenue from the sale of the crypto, and avoids wastage of gas and pollution. (Crypto Potato)

Bengal Energy acquired stranded gas wells in remote Cooper Basin, Australia, from partners Santos Energy (ASX: STO) and Bridgeport Energy (ASX: BPT). Bengal’s project to connect the gas wells with a distribution pipeline has run into difficulties due to COVID supply chain issues.

According to Kai Eberspaecher, Bengal Energy’s Chief Operating Officer, the company was faced with the prospect of having ready gas for six months but without an outlet because of the delayed pipeline.

However, necessity is the mother of invention, and Bengal has decided to try its luck with bitcoin mining using the gas from its stranded wells as an energy source. It plans to put about 70 mining rigs inside portable housing locally known as “dongas,” and use the proceeds from the sale of cryptos to alleviate its cash flow till such time as the gas can be evacuated to the pipeline.

If successful, Bengal could scale up the crypto mining and earn incomes potentially in the range of $2,000 to $5,000 per day.

Bengal has an illustrious predecessor in this activity – Exxon Mobil (NYSE: XOM). It was recently reported that the company has been working with Crusoe Energy Systems, a company based in Denver, to turn wasted energy, or flare gas, into electricity used to power thousands of bitcoin mining rigs.

Another company, Stronghold Digital Mining (NASDAQ: SDIG), uses coal waste to power its crypto mining operations.

Related Story: Stronghold Digital Uses Energy From Coal Waste To Mine Bitcoin

Image credit: Flickr

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