Argentina Energy Provider The Latest to Ink BTC Mining Deal
YPF is South America’s third-largest oil producer. It has several exploratory oil drilling projects in Patagonia.
Exploratory oil drilling often releases associated gas. In the past, many oil firms have simply burned this off (a process known as “flaring”).
But in many parts of the world, companies now use this gas to power crypto mining rigs via thermal plants.
The YPF deal will see the firms use a “mining farm” named Central Térmica Bajo del Toro, located in Rincón de los Sauces, Neuquén
YPF was nationalized by the government in 2012 and has gone on to become one of the nation’s largest energy companies in Argentina.
The firms will channel the gas to a thermal power plant with a total installed capacity of 8 MW.
They claimed the move would help reduce greenhouse gas emissions, make efficient use of energy, and monetize associated gas.
Patagonia Project Not Nation’s First
Abdumalik Mirakhmedov, the Executive President of GDA, said Argentina is “an important country for Bitcoin mining.”
He said that “given its abundance of energy sources and its business-friendly environment,” the nation was a natural pick for miners. Mirakhmedov added:
GDA has around 20 Bitcoin mining farms in regions including North America, Europe, and Central Asia. The firm operates over 180,000 mining rigs worldwide.
Mirakhmedov hailed the move, GDA’s first in South America, as “an important step” for the mining firm.
YPF, meanwhile, has been working with crypto mining players since 2022, when it first began using associated gas to power mining rigs.
And Equinor announced plans to incorporate crypto mining operations in sites on the Bakken oilfield in North Dakota in 2020.
In September 2023, fellow Argentina-based oil explorer Tecpetrol announced plans to operate a crypto mining “farm” in Western Argentina’s Vaca Muerta oil field.
