Kazakhstan Taps Associated Gas for Crypto Miners

Kazakhstan is introducing a new scheme to support its growing crypto mining industry by allowing miners to use associated gas from oil fields to generate electricity. This move aims to reduce gas flaring, decrease the load on the power system, and bring some miners back into the legal sector.

The plan links two industries: mining companies will be able to use excess associated gas at oil fields to generate electricity at their own power plants without drawing capacity from the general grid. This benefits both parties as miners get cheap and stable energy while oil producers can sell gas that was previously considered a problem, reducing their spending on fines.

According to Batyr Bauyrzhan, CTO of WES LLP, having their own power plant allows miners to lock in the cost of electricity for years ahead and be less dependent on grid tariffs and capacity restrictions. For this industry, this directly affects the payback period.