- Black Mountain Energy (BME) launches a technical consultation and review to potentially divert flared methane gas into energy to power the mining of cryptocurrency
- To execute this strategy, BME has signed a non-binding Letter of Intent (LOI) with Highwire Energy Partners to use well-testing gas from the Valhalla project in WA
- Highwire plans to buy up to five terajoules per day of gas in addition to the installation of up to 25 megawatts of generation to support its operations.
- Mining cryptocurrency from diverted waste natural gas has seen success in the US, with Highwire conducting similar operations in Wyoming
- Shares are trading 1.02 per cent higher at 9.9 cents each at 11:47 am AEST
Black Mountain Energy (BME) has launched a technical consultation and review to potentially divert flared methane gas into energy to power the mining of cryptocurrency.
To execute this strategy, BME has signed a non-binding Letter of Intent (LOI) with Highwire Energy Partners to use well-testing gas from the Valhalla project in Western Australia to power mobile cryptocurrency servers.
The document outlines Highwire’s intention to purchase up to five terajoules per day (TJ/day) of gas in addition to the installation of up to 25 megawatts (MW) of generation to support its operations.
If gas is supplied, the terms of the LOI would see BME pay for the infrastructure associated with the normal gas flaring process, while Highwire would take on the responsibility of overseeing the containerised mining servers.
The company said this presented a valuable opportunity to monetise what would otherwise be a wasted by-product.
A binding agreement would be subject to standard conditions, such as due diligence and regulatory approvals.
The company said mining cryptocurrency from diverted waste natural gas had seen success in the US, with Highwire conducting similar operations in Wyoming.
BME said it did not expect any immediate environmental impacts from carrying out the cryptocurrency mining activities using Highwire’s servers.
Shares in BME were trading 1.02 per cent higher this morning at 9.9 cents each at 11:47 am AEST.