A state-owned energy company has entered the ring to join the league of block reward miners operating in Argentina. YPF Luz, the renewable arm of YPF, has announcement that it will enter into a partnership with an anonymous international mining company seeking to establish itself in South American society.
YPF Luz said in a statement that its role would be to provide power to the mining giant, and in pursuit of the goals it had started building a 1 megawatt (MW) plant in the heat of Vaca Muerta. The region, nestled in the southernmost part of the country, is best known for its vast deposits of shale oil, a high-quality crude oil found between layers of shale rock.
Martin Mandarano, CEO of YPF Luz, told reporters that operations at the new plant will be renewable, using waste gas from previous oil production. The move follows a public outcry over Bitcoin’s energy consumption amid the global energy crisis looming as winter approaches.
“We started developing this generation pilot for cryptocurrency mining with a vision of sustainability and business from flare natural gas, which cannot be mined during exploration and early mining. production from an oil field,” Mandarano told Telam, a regional newspaper. exit.
Mandarano added that his company plans to build a second factory seven times larger than the one being built at Vaca Muerta. He revealed that the second 8 MW plant will be ready by the end of the year.
Mining in Argentina peaked in 2021 due to administrative inefficiencies and cheap energy resulting from electricity subsidies and exchange controls. With cheap electricity, mining companies began to take notice, plotting their appearance in the country. Canadian Bitfarms has taken the initiative to increase its hash rate with a mining plant in Rio Cuarto, Cordoba.
Go green or go home
Globally, the call for bulk mining to rely on renewable energy sources has grown in recent years. Fearing a moratorium on mining, mining companies have begun to explore alternative energy sources such as solar and hydroelectric power.
In El Salvador, the government mining plant depends on geothermal energy. In the United States, private mining companies are testing power for their factories using flared gas, a by-product of the oil production process.
Other companies are also exploring the possibility of using coal residue to power their mining plants, a strategy used by Stronghold Digital Mining in the United States as Congress investigates mining company activities.
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