Union Jack Oil, a publicly traded UK energy company, has announced a bold new initiative to harness natural gas at its West Newton site for Bitcoin mining. This could pave the way for one of the UK’s first corporate Bitcoin treasuries, transforming stranded energy resources into a profitable venture. The move promises early cash flow from gas wells that would otherwise remain undeveloped due to planning and regulatory delays.
Collaboration with Rathlin energy and 360 energy
The project is being carried out in partnership with Rathlin Energy and 360 Energy, a Texas-based company specializing in converting stranded or flared gas into power for on-site data centers. Under a non-binding letter of intent, the companies plan to deploy 360 Energy’s In-Field Computing technology to mine Bitcoin directly at the West Newton A site, pending regulatory approvals.
Executive Chairman David Bramhill believes that the successful implementation of this project could lead to the introduction of Union Jack’s Bitcoin Treasury strategy. This would mark a significant shift in how energy companies monetize underutilized resources.
Overcoming regulatory hurdles at West Newton
Union Jack Oil acquired its stake in the West Newton gas field in 2019, after Rathlin Energy made a significant gas discovery. However, regulatory delays have held up the development of necessary infrastructure. Instead of waiting for full-scale approvals, Union Jack Oil plans to use the gas on-site to generate revenue by powering Bitcoin mining rigs, bypassing traditional development timelines.
Bramhill emphasized that onshore developers and producers have been forced to think outside the box to find solutions. He sees this Bitcoin mining initiative as an “innovative” way to unlock value from West Newton’s otherwise untapped resources.
A broader trend in energy monetization
Union Jack Oil’s Bitcoin mining initiative aligns with a growing trend in the energy sector. Oil and gas companies worldwide are exploring the use of stranded or flared gas to power Bitcoin mining operations. This approach allows companies to avoid the costs and delays of connecting to traditional grids or building pipelines.
Notably, ConocoPhillips has launched a similar pilot in North Dakota, using excess gas for Bitcoin mining rather than flaring it. Other companies, like Tecpetrol in Argentina and AgriFORCE in Canada, have also turned to Bitcoin mining as a way to generate revenue from leftover gas.
This shift in how energy is monetized could offer energy firms a new and innovative way to capitalize on unused resources while driving the growth of cryptocurrency infrastructure.