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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
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Process

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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 was wasted was monetized, converted into cash, payouts on a daily basis.

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

Local generator company supplied existing underutilized inventory to the project.

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Objective

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 onsite.

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.

Urgency of the project. Scarce of crypto mining hardware because of high demand.

Solutions

EZ Blockchain closely worked with the 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 additional expense for transformer equipment.

A higher output wattage generator was picked for the project 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 data center for this application making some minor upgrades in electrical infrastructure to meet the clients deadline.

Smartbox was equipped with VFDs to regulate the fans 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 reasonable price without a risk of price change for the client.

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

Conclusion

Each crypto mining project on natural gas is a unique challenge at 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

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.