The Exxon Mobil Corporation (NYSE: XOM) is testing a program to mine bitcoin in North Dakota as part of a partnership with Crusoe Energy Systems.
Exxon's partnership with Crusoe helps address a major money-burning and climate-harming issue facing many energy companies: natural gas burnoff. The company specializes in technology that captures natural gas produced during oil drilling to fuel various computing systems, including bitcoin miners. ConocoPhillips (NYSE: COP) already employs similar methods to sell natural gas to third-party crypto miners.
While Exxon hasn't yet spoken on the project to any media outlets, an anonymous source told CNBC that the project was part of the company's plan to slash emissions.
Routine flaring to burn off natural gas has been a major environmental controversy for years, with routine flaring becoming increasingly frequent as domestic oil production expands. The practice releases massive amounts of methane and other harmful gases into the atmosphere in greater concentrations than typical emissions. While selling the gas to third parties has always been a solution to the problem, some production facilities do not possess the infrastructure to transport the gas to sell, leaving flaring as the only option.
Crusoe claims that its technology can reduce emissions by up to 63% by diverting the excess gas to generators to power computers kept in a drilling facility adjacent container. If similar technology is employed on a larger scale, it could help reduce flaring and provide crypto miners with a solution to reducing their own carbon footprint.
"This is just a great way to bring that demand to the wasted energy and solve two problems at once." Said President of Crusoe Energy Systems Cull Cavness. "Solve the energy appetite of bitcoin and solve the stranded energy, flare gas problem for the energy industry."
Despite the project and the energy firm's strong Q4, Exxon stock has been down in the first days of trading this week. Shares slid 2.8% during trading on Monday, and slid a further 2.17% by noon on Tuesday.