Crusoe Energy will offer oil companies to use surplus natural gas for cryptocurrency mining.

Xcelpay|3 min read|Mar 17, 2020

Crusoe Energy Systems has announced the development of mobile modular data centers that can be used for mining cryptocurrencies, consuming the excess gas remaining in oil production.

It is reported that with the help of such mobile data centers, oil producing companies will be able to stop burning excess gas and use it for cryptocurrency mining. This will also reduce emissions of carbon dioxide, volatile organic compounds and nitric oxide immediately by 99%.

“We are committed to developing new technologies to reduce emissions from gas flaring that can cope with the large gas flow generated by shale oil producers in North America. Crusoe technology enables the use of wasted energy for growing industries that require energy-intensive computing. For example, for the areas of blockchain and artificial intelligence, ”said Chase Lochmiller, co-founder and head of Crusoe.

The company has already received more than $ 4.5 million investment in the development of appropriate equipment. Investors included Bain Capital Ventures and the Founders Fund Pathfinder, as well as Winklevoss Capital Management.

A recent Reportlinker study showed that the mining equipment market will grow in the coming years. At the same time, demand for FPGA processors and ASIC miners will contribute to this growth.

The Denver company, which is setting up data centers on shale drilling sites to take advantage of its surplus natural gas reserves, says it currently has eight operations across the United States and plans another 30 in the first half of next year.

The centers are touted as a way to solve the growing problem of gas burning when energy companies burn excess gas. Burning in Texas this year reached a record high due to a lack of pipelines.

Crusoe Energy Systems Inc., in close contact, uses part of the excess gas in the source to turn it into electricity, powering data centers, which, in turn, generate revenue from bitcoin mining. Next year, the company will install 70 units, each with a capacity of about 1 megawatt, which

will avoid burning about 10 million cubic feet of gas per day, CEO Chase Lochmiller said in an interview.

“This is a very creative way to solve environmental and economic problems for the oil and gas industry,” said Alex Urdea, Investment Director at Upper90 Capital Management LLC, which agreed to provide Crusoe with $ 40 million in project financing. The business model is of interest to large oil and gas producers, and ultimately it may include revenue sharing, he added. Crusoe also raised $ 30 million by selling shares to investors, including Bain Capital Ventures.

Earlier this year, Crusoe raised $ 5 million in seed capital from investors, including Winklevoss Capital Management LLC. Several units can be deployed on one site to build scale. As the number of active modules increases, Crusoe plans to start using some of these computing capabilities to develop a new cloud computing service with artificial intelligence.

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