Iraq’s determination to fire gas sparks sparks of crypto mining speculation
Iraqi Deputy Prime Minister Mohammad Ali Tamim recently met the US-Iraq High Coordination Committee with US Secretary of State Anthony Blinken to discuss the future partnership between the two countries.
During the meeting, Deputy Prime Minister Tamim said Iraq's goal is to reduce dependence on fossil fuels, reduce environmental pollution and create new partnerships and use technology to capture flare gas, a byproduct of the oil field industry. It is considered a toxic pollutant.
“The government of Iraq is expanding its partnerships and making agreements that allow, for example, to use technologies to capture combustible gas to create and develop independence in energy, as well as to invest in other energy sources, including renewables and solar energy.”
The statement surrounding the use of “technologies” to contain fire gas has led some in the crypto community to speculate that Iraq is considering entering the Bitcoin mining sector.
Burning gas
When crude oil is extracted and refined, gas is stored and loaded into processing equipment. This “waste gas” is typically sent to a facility where it can either be converted to electricity or burned into the atmosphere.
Because many of Iraq's oil fields are remote, it has long been considered economical to convert flare gas, and much of it pollutes the atmosphere.
Iraq's Rumaila oil field is the world's largest producer of toxic gas, although efforts are currently underway to capture and recycle up to 60% of it, with plans to shut down all gas in the country by 2027.
Bitcoin mining
People have used everything from nuclear energy to their own excrement to mining cryptography.
Texas startup Bitcoin mining company Giga uses flare gas generated from gas stations around the country to power trucks with mobile mining rigs. According to a report from CNBC, the company was making millions in profits through 2021.
In Iraq, the challenge comes at a very high level. As the world's largest polluter of flare gas, converting 100% of the pollution into usable electricity requires a special effort.
However, as noted above, Iraq currently has to balance its domestic energy needs with its foreign debt. While adding power to the grid will certainly help ease the nation's burdens, mining some of that electricity for Bitcoin will have a more positive impact.
Related: Crypto firm 7RCC is quietly promoting its eco-conscious space Bitcoin ETF.
Another potential way to use the energy provided by captured flare gas is through a carbon credit environment. In theory, Iraq could reduce its own carbon footprint by not only capturing flare gas, but also engaging the international market by selling carbon credits on the blockchain. This represents an unwavering validation of the country's efforts and a potential temporary source of revenue as it works to reduce its dependence on oil.
