Daniyar Mubarakov, Head of the Blockchain and Digital Mining Association, told Euro News that miners were ready to purchase and install equipment to convert this flare gas into usable power. He also estimated that the total flared gas production of Kazakhstan could be turned into 1.2–1.3TWh.
Depending on the location, an oil field could power a medium or large digital center or bitcoin mining farm. The strategy is seen by both miners and oil companies as a win-win association, as the former buy the gas at lower prices for their activity, and the latter profit from selling it, avoiding paying disposal fees that reach into the millions.
Batyr Bauyrzhan, Technical Director of WES LLP, a power solution integrator, also highlighted that this solution lets miners lock in power prices for years and avoid depending on grid-based solutions whose tariffs can fluctuate.
The Ministry of Energy estimates that up to 60 oil fields produce flare gas, highlighting ample opportunities for several companies to set up shop and start operating.
Gizzat Baitursynov, Kazakh Vice Minister of AI and Digital Development, revealed that a legal framework to clarify the rules that companies would follow was under development, stressing that this new mechanism is “highly beneficial” for the country, as it will allow the government to profit and improve the environment all at once.
