The oil and gas investment holding company Reabold Resources could use one of the UK's largest gas fields to mine bitcoin in the coming months. The gas field offers a relatively cheap means of mining BTC.
The company has expressed interest in using the site in West Newton in North Yorkshire, which holds an estimated eight billion cubic meters of gas, to produce at least 50,000 bitcoins (BTC). It intends to deploy a small-scale power generation facility to handle the production.
Utilizing Gas For Bitcoin Mining
Reabold’s decision has sparked reactions from several individuals and entities, especially energy and environmental campaigners, who have criticized the move. These critics insist that using the gas to mine bitcoin will not serve any public benefit but facilitate socially questionable activities, especially at a time of missed climate targets. They believe the gas field should be used to boost Britain’s energy supplies instead.
According to a report from The Telegraph, local authorities recently awarded Reabold a gentle fracking license, alongside Rathlin Energy, a developer of oil and gas reserves in England.
Gentle fracking is a less intrusive, more controlled method of extracting oil and natural gas from deep underground rock formations. The technique applies less intensive variations of traditional hydraulic fracturing by creating cracks in the rock through the injection of high-pressure fluid. However, this method uses less water and fewer chemicals, reducing the potential for earthquakes and overall environmental impacts.
Environmental Concerns
Reabold and developers from Rathlin will inject oil-based fluid into West Newton’s reservoirs to fracture the rocks and extract natural resources. Although drilling in the North Yorkshire region has been a point of contention for environmental organizations for years, the Environment Agency (EA) insists that Rathlin has remained compliant with fracking regulations, which explains the license award.
Regardless of the EA’s claims, environmental campaigners insist the agency has not properly considered the potential risks of continued fracking, no matter how gentle. Interestingly, one Peter Lomas, a campaigner from Hornsea, tried to legally challenge the awarding of the license.
If Reabold succeeds in using gas from the West Newton field to mine BTC, the company would be using energy sufficient to meet at least a tenth of the UK’s annual needs. The firm’s co-chief executive officer, Sachin Oza, believes having a private gas supply would help fund the further development of the gas field and possibly a larger data center.
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