Russian Provincial Governor Proposes Using Associated Gas from Oil Drilling Sites to Power Bitcoin Mining Operations

A Russian provincial governor has proposed a solution to Bitcoin mining-related energy shortages. He suggested that associated gas from oil drilling sites could power mining operations.

A provincial governor in Russia has proposed a solution to Bitcoin mining-related energy shortages, suggesting that associated gas from oil drilling sites could be used to power mining operations.

The suggestion was made by Irkutsk Governor Igor Kobzev, who also proposed that crypto miners could collaborate with oil and gas companies to build data centres powered by alternative fuels.

Governor Kobzev’s comments come amid mounting energy concerns, especially after the recent year-round ban on Bitcoin mining in southern Irkutsk.

“The regional administration supports crypto mining, but it’s important to ensure reliable electricity for residents and businesses,” Governor Kobzev said.

He added that mining operations should be arranged to take into account the region’s electricity. The government is open to discussing partnerships between miners and the oil and gas sector.

As reported by Chainalysis earlier this year, Russian companies like BitRiver and Gazprom Neft have already experimented with using associated gas to run crypto mining facilities.

Meanwhile, the Ministry of Energy is reportedly considering additional regional mining bans due to the strain on electricity networks. For instance, a draft decree seen by Bloomberg suggests banning crypto mining in the Moscow region.

Despite the concerns, Governor Kobzev’s support for associated gas-powered mining is seen as a move to reduce flaring and the environmental impact.