UK gas field to be used to mine bitcoin

THE UK’s largest onshore gas field could be used to mine bitcoin and power data centres in a move proponents say is “crucial” for the economy but critics argue undermines energy priorities.

Reabold Resources, an investment company operating in the European gas market, was part awarded a ‘gentle’ fracking license, alongside site developers Rathlin Energy, for a gas field in West Newton in North Yorkshire.

The site is said to hold around 8bn m3 of gas and Reabold has expressed its interest for the site to be used for bitcoin, of which it believes has the potential to mine around 50,000 bitcoins.

Gentle fracking

Rathlin Energy has held a drilling license for West Newton since 2013, with the Environment Agency (EA) awarding the most recent licence in February for “well stimulation”.

This process involves injecting an oil-based fluid into West Newton’s second well into reservoirs at pressures high enough to fracture rocks.

The EA maintains that the licence was awarded due to Rathlin’s continued compliance with fracking regulation.

However, drilling in the region has been a point of contention for environmental organisations and campaigners for years.

Recently, Peter Lomas, a campaigner from Hornsea, attempted to launch a legal challenge against the awarding of the licence.

He said: “[The EA] did not properly consider the potential risks, including small earthquakes and water pollution.”

Bitcoin

Reabold’s proposal for bitcoin mining has attracted further controversy over West Newton, with many criticising its use for energy security.

Lorraine Inglis, an anti-fracking campaigner, told The Telegraph: “Using that gas to power bitcoin mining is not energy security or any genuine public benefit but the deliberate burning of fossil fuels for one of the most energy-intensive and socially questionable activities at a time of high bills and missed climate targets.”

Reabold has clarified in a statement that it is exploring the idea of developing a “small-scale power generation facility” at West Newton to mine bitcoin from initial flows of gas following the upcoming well workover.

They said in the statement: “Successful implementation of such a project could allow for the development of a larger scale data centre at site, which would not preclude the potential for gas to grid, or gas to industrial consumption development options.”