Kazakhstan Taps Flare Gas to Power Crypto Mining Revival
Kazakhstan's government is reviving its crypto mining industry by tapping into flare gas opportunities. The country has allowed miners to use flared gas, which can provide up to 1.3TWh of cheap power for crypto operations.
Oil companies can sell waste gas to miners at a lower price than disposal fees, which can reach millions of dollars across 60 oil fields. This solution is seen as a win-win association for both miners and oil companies.
A new legal framework is under development to regulate the market, boosting tax revenues while cutting emissions. The government estimates that up to 1.2-1.3TWh of flare gas production could be turned into usable power, depending on location.
Daniyar Mubarakov, Head of the Blockchain and Digital Mining Association, said miners were ready to purchase equipment to convert flare gas into usable power. Batyr Bauyrzhan, Technical Director of WES LLP, highlighted that this solution lets miners lock in power prices for years, avoiding grid-based solutions whose tariffs can fluctuate.