(Credit: Pixabay)A cryptocurrency mining operation will receive 4 megawatts of clean energy through a two-year rental agreement with Capstone Green Energy.
The operation is located on an oil and gas well and the remote data center handles a large volume of blockchain and cryptocurrency mining, according to Capstone. The energy company says it was approached to look at a way to use existing on-site production of gas and help the operation with its high energy needs.
The Capstone microturbine energy systems offer fuel flexibility and the system will use the waste gas as essentially a free fuel, which will help provide that energy while also reducing emissions and helping lower operational costs.
Cryptocurrency mining is the process in which new crypto “coins” are entered into circulation. The process uses advanced computers, often in a data center, to solve complex math problems.
The New York Times reported that cryptocurrencies use huge amounts of electricity, and the creation of Bitcoin alone consumes nearly 91 terawatt hours of electricity a year. That is nearly 0.5% of the world’s electricity use and it has increased by about 10 times what it was five years ago.
In 2018 a utility company in Washington raised rates specifically for Bitcoin mining.
Data centers alone can use a large amount of electricity and have been a focus on improved efficiency over the years. Data centers account for nearly 2% of all electricity use in the United States, according to the Department of Energy, and a Research and Markets reports found that the energy efficient data center market will grow at a CAGR over 23% through 2026 and be valued at $182 billion.
Energy procurement is then essential for this type of cryptocurrency production.
Capstone says by offering its energy as a service platform it can provide on-site power that is resilient in areas where there may be inadequate power infrastructure and is a viable alternative for energy-intensive facilities. Capstone says the low emissions, reliability and minimal maintenance requirements of the microturbine rental systems can make them a good fit for remote locations, such as the cryptocurrency operation.
The agreement has increased Capstone’s energy agreements to 21.1 MW through the end of March 2022.
