Fyfe has been working with Bengal Energy on an innovative project in Queensland’s Cooper Basin. With our engineering assistance, Bengal Energy is now running a small-scale Bitcoin mining operation in a remote area.
Fyfe has been working with Bengal Energy on an innovative project in Queensland’s Cooper Basin. With our engineering assistance, Bengal Energy is now running a small-scale Bitcoin mining operation in a remote area.
Faced with existing gas wells without access to the market due to an absence of pipeline infrastructure, Bengal Energy devised a clever solution. In a small on-site donga, the company is running around 40 mining rigs: high-powered computers that handle the complex mathematical calculations required to mine cryptocurrency.
This pilot is testing how much bitcoin can be mined with its current capacity, and Bengal Energy is looking to scale up the operation with more efficient machines in the near future.
Cryptocurrency and the shift to renewables
Cryptocurrency mining has the potential to facilitate the adoption and development of renewable energy sources.
It’s no secret that coin mining operations consume significant electricity, but this very demand can help incentivise the growth of renewable energy infrastructure. The profitability of mining is directly tied to energy costs, and as traditional energy sources become costlier, miners will seek affordable alternatives.
Meanwhile, renewable energy is becoming increasingly competitive in terms of both price and availability, making it hard for coin miners to miss the long-term cost benefits of switching to clean energy sources.
In addition, the intermittent nature of renewable energy means that any innovations functioning as a curtailment action are welcome. Crypto mining can, as shown in Texas, act as a ‘demand response’ for excess renewable energy generation.
During periods of high renewable energy output, when the grid may be underutilised, miners can tap into the surplus electricity, helping to stabilise the grid and reduce curtailment, making the system more efficient overall and ensuring less energy is wasted.
Fyfe’s role in Bengal’s Bitcoin project
To support Bengal Energy, we provided a range of initial services, including preliminary designs, integrity studies and engineering consultant services.
Helping to make the innovative project a reality, our work from Bengal Energy shifted to an Engineering and Procurement contract. We helped put the wells back into production, managed procurement for the project, and provided end-to-end engineering services.
We’re pleased to be part of this project, which also utilised Australian products and fabrication, and sees stranded assets and disused energy infrastructure being put to good use — a use that could see coin mining operations become an integral part of green energy systems in the future.
Fyfe has significant experience delivering on complex energy projects across Australia, including in some of the country’s most remote and challenging areas. Learn more about the project here, and please contact us for more information.
