Russia considers using oil field by-products for ‘hybrid modules’ of Bitcoin mining


The exodus of Bitcoin miners from Chinese mining hotbeds has left a vacuum that many global players are scrambling to fill. It was recently noted that most of the lost hash power has been restored, thanks to renewed operations in North America.

However, other miners are looking to shift base to regions closer to China, such as Kazakhstan and Russia. Moreover, Russia seems to be all in for it, as the government is considering a Bitcoin mining project that would use associated petroleum gas.

Local news outlet, Kommersant reported earlier today, that the Russian deputy minister of Industry and Trade, Vasiliy Shpak, had filed a proposal with the Russian central bank and the Ministry of Digital Development. It was filed last month to use by-products from the country’s expansive oil fields to mine cryptocurrencies.

The initiative had reportedly originated from local oil and gas companies, and Shpak has seemed to gain the government’s feedback on the same through his proposal. The by-product in question is associated gas, which has been exclusively mentioned by the firms as the energy source which would power nearby data centers for Bitcoin mining.

Associated gas is a byproduct of oil drilling, and is often wasted through gas flaring where it is just burned off in the absence of proper gas infrastructure. This has been a point of contention for the Russian government, which is increasing its efforts to cut off emissions that gas flaring causes.



Please enter your comment!
Please enter your name here