Black Mountain Energy investigating Bitcoin mining at Kimberley site targeted for fracking

A United States-owned resources company hopes to use “flared-off” gas from fracking wells to mine cryptocurrency in a process it says will curb emissions.

Black Mountain Energy revealed the plan in a statement to the ASX last week, which will see methane, a usually burned off fracking by-product, power “cryptocurrency servers”.

The company is investigating options to roll out the project at its Valhalla Project fracking site in the Kimberley’s Canning Basin in conjunction with Wyoming-based start-up, Highwire Energy.

Cryptocurrency mining uses computer servers to solve cryptographic algorithms, which validates transactions and maintains a shared record of transactions. The so-called miners are automatically rewarded with a portion of the digital currency. 

Flaring is a process where excess natural gases are burnt off during or after the resource extraction process.

Company touts benefits

In an interview with finance website, The Market Herald, Black Mountain Energy’s chief executive officer Rhett Bennett said the project would use gas left over from fracking to power the servers.

Posted , updated