The company has received several approaches from owners of crypto mining facilities that could potentially be powered via by its new discovery in Utah
Zephyr Energy PLC may be set to fuel a new generation of cryptocurrency mining, according to its chief executive officer Colin Harrington.
The company is mulling on-location crypto mining as a novel method of monetisation for its breakthrough gas discovery in Utah, in a geological area known as the Paradox basin.
It comes after the Paradox breakthrough confirmed successful well testing which showed peak rates of just over 1,000 barrels oil equivalent per day, with the average test rate of 700 boepd.
Looking to the future, the company predicts unrestricted production volumes can reach 2,000 boepd from the well, and, it is now exploring options to commercialise the asset.
One option would be a traditional hydrocarbon export route, another more novel approach would be to use the gas to fuel power generation for cryptocurrency mining.
“We’ve had a number of approaches over the last year from owners of cryptocurrency mining facilities because of the huge power demands that that are needed,” Harrington said in an interview with Proactive.
“There’s also been a real push to get the electricity usage that the powers these facilities into something cleaner like gas.”
“There’s a growing demand for dedicated natural gas sources that can create electricity to mine crypto and neighbouring operators around us are doing it, and they’re seeing pretty phenomenal returns.”
Harrington noted, however, that Zephyr won’t be jumping into any decision without leaning on the advice of its “world class board of advisors,” who have plenty of knowledge on the “regulatory, legal and technology perspective.”