- Black Mountain Energy (BME) plans to collaborate with Highwire Energy Partners to divert otherwise flared methane gas from well-testing at its Valhalla Project to power mobile cryptocurrency servers
- Highwire provided a non-binding Letter of Intent (LOI) to purchase up to 5 terajoules per day (TJ/day) of methane gas from the wellhead to power generators and the installation of up to 25 megawatts (MW) of generation to support operations
- The process is said to reduce CO2-equivalent emissions by approximately 63 per cent compared to traditional flaring
- Important opportunity to monetise what would otherwise be a wasted by-product. US Companies have already implemented the alternative
In a strong commitment to reduce greenhouse gas emissions and maximise return for shareholders, Black Mountain Energy (BME) is undertaking a technical consultation and review to divert flared methane gas into energy to power the mining of cryptocurrency.
This process can significantly reduce greenhouse gas emissions and provide important revenue opportunities prior to baseline egress via pipeline.
Additionally, it has the potential to generate economic opportunities within the operating area and local communities.
The company received a non-binding Letter of Intent (LOI) from Wyoming-based Highwire Energy Partners to use well-testing gas that would otherwise be flared at the Valhalla project in the Canning Basin of WA, to power mobile cryptocurrency servers.
This document indicates Highwire’s intention to purchase up to 5 terajoules (TJ/day) of gas and the installation of up to 25 megawatts (MW) of generation to support its operations – subject to the agreement of acceptable terms and conditions.
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.
Revenue generation prior to a pipeline being built
Cryptocurrency mining is not only an ESG-positive alternative to flaring, but it is also an important opportunity to monetise what would otherwise be a wasted by-product.
The LOI is the first step in securing this new source of revenue that would be available prior to a pipeline being built.
The appeal of the cryptocurrency mining solution is its portability and short timeframe to implement.
The containerised mining servers can be placed right at the source of energy and immediately start generating, without the long lead time associated with pipelines and LNG offtake agreements.
Greenhouse gas emissions reduction
In practice, gas from the wellhead would be diverted to generators, where it would be converted into electricity to power the cryptocurrency mining servers.
100 per cent of the methane in gas would be combusted when used in electricity generation.
According to research from Denver-based Crusoe Energy Systems, this process reduces CO2-equivalent emissions by approximately 63 per cent compared to flaring.
Economic opportunities in the operating area
Cryptocurrency mining would also provide local employment opportunities in the Kimberley.
Black Mountain Energy is continuously exploring promising technologies like these to not only improve its operations, but the surrounding community.
Shares were trading 1.01 per cent lower today at 9.8 cents at 10:00 am AEST.