Exxon might launch its ‘gas-to-bitcoin’ pilot project in five new locations

Exxon Mobil Corporation (NYSE: XOM) plans on expanding its gas-to-bitcoin pilot programme, launched in North Dakota last year, to five new locations, anonymous sources told Bloomberg on Thursday.

What’s in it for Exxon Moil?

The initiative helps Exxon minimize production flaring – an industry practice whereby the excess natural gas associated with oil extraction is burned into the atmosphere.

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In January 2021, the oil giant partnered with Crusoe Energy Systems to deflect this excess gas from its oil wells in North Dakota to power mobile bitcoin mines. More than a year later, the programme now helps Exxon monetize roughly 18 million cubic feet of gas every month.

A similar pilot project is now set to launch in Alaska, Guyana, Argentina’s Vaca Muerta shale field, the Qua Iboe Terminal in Nigeria, and Germany, as per the Bloomberg report.

Exxon is yet to make an official announcement

Exxon spokeswoman Sarah Nordin refused to comment on “rumours and speculations”, but said in an email:

We continuously evaluate emerging technologies aimed at reducing flaring volumes across our operations, in line with the World Bank’s call to end flaring by 2030.

Crusoe refused to make an official comment on the news as well. Last month, peer ConocoPhillips also said it was redirecting excess natural gas to power cryptocurrency-mining operations.