In this episode, I talk with Jacinda Brown, co-founder of CryptoKnight Energy about how operators are using bitcoin mining to monetize stranded gas to reduce flaring and how this presents an opportunity for mineral and royalty owners.
We talk about some really interesting topics, including recent regulations that have been implemented that prevent the routine flaring of natural gas, the locations that are suitable for bitcoin mining, the types of arrangements that are used with oil and gas operators that allow bitcoin miners to use produced gas, the details around mining bitcoin, and how she sees this nascent industry developing.
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We Discuss
- Jacinda’s Background and Experience
- How CryptoKnight Energy got started
Off-Grid Bitcoin Mining to Monetize Stranded Gas
- In Episode 140, Justin and I talk about what Bitcoin is, what is bitcoin mining, the energy usage of the Bitcoin network, and how companies like CryptoKnight Energy are monetizing stranded natural gas to mine bitcoin. Be sure to listen to that episode first if you would like to learn more about Bitcoin.
- What steps are involved in order to get a site ready so that you can start mining?
- How much power can be generated from a typical oil well where the associated gas would otherwise be flared?
- What are some of the biggest challenges you’ve faced getting your company off the ground?
- With the focus on reducing CO2 and methane emissions, how are operators thiking about using bitcoin mining to monetize stranded or flared gas?
Considerations for Royalty Owners
- How most royalty owners don’t receive a royalty when gas is flared and how bitcoin mining is changing this.
- What basins or plays in the United States are particularly a focus area for reducing flaring? Why have operators flared gas there versus simply selling it?
- What type of gas is best suited for Bitcoin mining using natural gas generators.? Do you need pipeline quality gas or can any field gas be used?
- How much gas do you need to generate power for bitcoin mining?
- What types of arrangements with oil and gas operators are you seeing in the bitcoin mining space?
- Are operators primarily signing agreements for bitcoin miners to purchase their gas or are there other types of agreements that you’ve seen, like revenue sharing agreements or some other joint-venture arrangement where they participate in mining?
- What are the typical responsibilities between the operator and the bitcoin miner in terms of who is responsible for connecting gas from the surface facilities to the generator, power to the data center, operations and maintenance of say in case you get the gas line freezing or the generator or engine maintenance?
- What type of uptime and reliability are you seeing from operators ability to provide a steady stream of natural gas? What happens to the gas when the generator goes down?
Future Developments
- How many companies are doing what CryptoKnight Energy is doing?
- How do you see this developing into the future? Do you think larger operators will get into bitcoin mining themselves at some point or will off-grid mining continue to be dominated by a large number of smaller miners?
- I’ve heard that there is enough flared natural gas to power the entire bitcoin network so it seems the supply of natural gas isn’t an issue. What are the biggest barriers to this continuing to scale into a large part of the bitcoin network?
- Are you getting approached by a lot of potential investors wanting to invest in off-grid bitcoin mining? What are the things that attract potential investors?
How to Contact Jacinda
- Email: jacinda@cryptoknightenergy.com
- Connect with Jacinda on LinkedIn
- Telegram: @jacindaNbrown
- www.cryptoknightenergy.com
Resources Mentioned in This Episode
Other Interesting Stuff
- The Bitcoin White Paper “Bitcoin: A Peer-to-Peer Electronic Cash System
- The Bullish Case for Bitcoin (Compares Bitcoin to other Monetary Systems)
- How much do those Bitcoin computers make anyway?
- Approximate Consumption of Different Natural Gas Generators
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