Argentina’s Energy Giant YPF to Mine Bitcoin Using Wasted Gas Reserves

May 8, 2024

Argentina’s energy sector is witnessing a groundbreaking shift towards sustainability with the launch of a gas flare-powered Bitcoin mining facility. YPF Luz, a state-owned energy firm and a subsidiary of YPF, has teamed up with Genesis Digital Assets (GDA) to repurpose stranded natural gas from oil fields, converting it into valuable cryptocurrency while curbing carbon emissions.

Argentina, renowned for its rich natural resources, is pioneering an innovative approach to Bitcoin mining. By repurposing gas currently burned as waste, YPF Luz and GDA aim to reduce environmental impact while capitalizing on the profitability of cryptocurrency mining. This initiative aligns with Argentina’s growing interest in Bitcoin, following the election of Bitcoin-friendly President Javier Milei in late 2023.

Operating with a total power capacity of 7 megawatts (MW) and backed by an additional 1 MW of backup power, the facility boasts 1,200 Bitcoin mining machines. Powered by the Bajo del Toro Thermal Power Plant, jointly managed by YPF, Equinor, and YPF Luz, the facility harnesses stranded gas that would otherwise be flared into the atmosphere, transforming it into productive energy.

GDA estimates that this innovative mining operation could slash carbon emissions by up to 63%. This underscores the potential of Bitcoin mining to contribute to environmental sustainability by repurposing existing resources.

For YPF Luz, monetizing stranded gas offsets costs and promotes sustainability, while GDA benefits from competitive energy pricing and reduced carbon output.

Argentina’s initiative reflects a growing global trend towards sustainable Bitcoin mining practices. Bhutan utilizes renewable hydropower for Bitcoin mining during seasonal excess, while El Salvador relies on geothermal energy for carbon-neutral mining.

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