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Crypto mining at gas processing plant excess flared gas
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Crypto mining at gas processing plant excess flared gas

Summary

Location

Uinta Basin

Power connection

Self-generation, gas electric generator, flared gas

Footprint

1x 30 Ft mobile data center Smartbox

Power consumption

300 KWs

Site power capacity

1 MW

Time from idea to fully operational site

60 days

Installation time

2 days
Crypto mining at gas processing plant excess flared gas

Process

photo process Crypto mining at gas processing plant excess flared gas
photo process Crypto mining at gas processing plant excess flared gas
photo process Crypto mining at gas processing plant excess flared gas
photo process Crypto mining at gas processing plant excess flared gas

In details

Benefits
FOR PRODUCER AND LOCAL COMMUNITY

The producer was able to eliminate flaring before the flaring permit expiry date without a need to apply for exemption or renewal. 

Flared gas, which otherwise would be wasted, was monetized, converted into cash payouts on a daily basis. 

EZ Blockchain worked with a local electrical contractor for the electrical engineering services.

A local generator producing company supplied the existing underutilized inventory for the project.

Opened entry-level tech jobs.

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Objective

The client’s goal was to eliminate flaring at their gas processing plant and monetize the flared gas in an alternative way by doing crypto mining on-site.

Challenges

The project is installed in a remote location, making it difficult to staff personnel. The internet signal was very weak and there was no available internet infrastructure. 

Flared natural gas was rather rich in carbohydrates. Drastic temperature changes during the night compared to the day temperatures. Non-standard crypto mining hardware voltage input requirements.

The urgency of the project. The scarcity of crypto mining hardware due to high demand.

Solutions

EZ Blockchain worked closely with a Genset supplier to provide necessary information for generator rewiring to make it capable of powering crypto mining hardware directly at 415/240V three-phase without any additional expenses for transformer equipment.

A higher output wattage generator was picked for the project in order to take into consideration the efficiency derating because of high BTU gas. The project development was rather urgent. Therefore, EZ Blockchain quickly prepared a used mobile bitcoin container for this application, making some minor upgrades in electrical infrastructure to meet the client’s deadline.

Smartbox was equipped with VFDs to regulate the fan speed based on the ambient temperature to keep crypto mining hardware running at optimal efficiency. Our procurement department was able to utilize its network of hardware suppliers, distributors to source hardware at a reasonable price without the risk of price change for the client.

EZ Blockchain networking team built a network infrastructure that allowed them to transfer data at a very low internet speed. We analyzed the network connectivity and availability in the area and sourced the satellite internet with a redundant cell internet backup.

Conclusion

Each flared gas crypto mining project is a unique challenge on its own, especially when we deal with flared gas. Flared gas supply consistency, carbohydrates contents, and pressure vary from basin to basin and from well to well.

Each project on flared gas requires its unique well-measured approach and some time to evaluate and plan the steps of execution. Well, downtime and generator maintenance downtime have to be factored in the financial projections when planning every Bitcoin mining operation on flared gas.

Testimonial

Tom Kirkwood

EZ Blockchain delivered and installed a BTC mining box and associated miners with very little issues. The project is running smoothly, and a second box is on schedule to be delivered and installed.

This install will limit flaring at the field to a minimum, turning stranded gas into a profitable solution. The company designed the project from scratch, sourced crypto mining hardware in very tough market conditions.

After the installation, EZ Blockchain operates the crypto mining operation on a daily basis.

Tom Kirkwood
Wesco Operating, INC.
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