The Russian oil industry is exploring the possibility of using unused flare gas to power cryptocurrency mining.

It was reported on September 7 by the Russian newspaper Kommersant that the central bank was in discussions with other government agencies, including the Ministry of Industry, Trade, and Industrial-Related Development and the Ministry of Digital Development, about the possibility of using waste natural gas to power data centres that were primarily focused on cryptocurrency mining.

The cryptocurrency will be able to conduct transactions because it will be powered by flaming gas

To date, no approval has been granted for cryptocurrency mining operations in Russia, despite the fact that the industry is completely unregulated. In order to power crypto mining, natural gas would be used because it is typically unprofitable to extract because it is always flared during oil drilling, making it an attractive option for cryptocurrency mining. For crypto mining purposes, on the other hand, natural gas is preferred over coal due to the fact that it is typically unprofitable to extract.

Solar flares are widely recognised as a green energy source, in part because they generate no useful energy while in use, making them a non-polluting source of energy.

A large number of cryptocurrency miners who fled China have taken up residence in Russia, Kazakhstan, and the United States, among other places.. According to the Bitcoin Foundation’s statistics, as a result of this, Russia has risen to become one of the world’s top producers of Bitcoin hash rates.

The term “mining hotels” refers to a type of facility that accommodates excess capacity in the mining industry.

Furthermore, the government may come under increased pressure from players in the oil industry, thereby tightening the noose that has been placed around its own neck, as previously mentioned.

“One of Russia’s largest oil corporations would like to expand its cryptocurrency mining operations,” the report states, and “industry participants have suggested that flared gas be used for cryptocurrency mining.”

It is possible that Russia’s oil companies will use this opportunity to build data centres or to rent out their excess capacity as “mining hotels” to investors from China, where mining is prohibited, according to Alexander Zhuravlev, Chairman of the Moscow Branch of the Russian Bar Association’s Commission on Legal Support of the Digital Economy.

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