Iraq Aims to Curb Fossil Fuel Dependence: Speculations of Entry into Bitcoin Mining
Summary:
In a recent U.S.-Iraq Higher Coordinating Committee meeting, Iraq's Deputy Prime Minister, Muhammad Ali Tamim, affirmed Iraq's commitment to reducing its dependence on fossil fuels and curbing pollution. Highlighting the nation's focus on harnessing 'flare gas' using innovative technology, he sparked speculations about Iraq's potential entry into the Bitcoin mining sector. Given Iraq's status as the world's largest emitter of flare gas pollutants, this transformation could significantly aid national energy demands and foreign debt. Furthermore, the energy gained from captured flare gas could potentially earn the country carbon credits, providing a temporary income source as Iraq reduces its fossil fuel reliance.
Recently, a U.S.-Iraq Higher Coordinating Committee meeting was held between Iraq's Deputy Prime Minister Muhammad Ali Tamim and U.S. Secretary of State Antony Blinken. Deputy Prime Minister Tamim elucidated during the meeting that Iraq is enthusiastically working towards lessening its reliance on fossil fuels, curbing pollution, and entering into new alliances to innovate and apply technology to harness 'flare gas', a wasteful and toxic outgrowth of oil extraction. He further added, "Our government is broadening our cooperation and finalizing deals to leverage technology to harness flaring gases, reinforce energy independence, and venture into diversifying energy sources, including solar energy and renewables." The Deputy Prime Minister's reference to harnessing 'flare gas' using innovative technology has led to speculation in the crypto community about Iraq's potential move into the Bitcoin mining sector. Information source: X.com/@boomstick44.
Flare gas is a byproduct of oil extraction and refinement processes, resulting in a gaseous build-up causing pressure in the equipment used. This 'waste gas' is usually directed to a facility for conversion into useful derivatives such as electricity, or it gets released into the environment. Given the remote locations of many Iraqi oil fields, the conversion of flare gas has been deemed unprofitable, leading to significant atmospheric pollution. The Rumaila oil field in Iraq, being the largest emitter of noxious flare gas, is reported to be capturing and repurposing up to 60% of it currently, with a plan to eliminate gas flaring altogether by 2027.
As for Bitcoin mining, various resources ranging from nuclear power to human waste have been harnessed. A start-up from Texas, Giga, has utilized flare gas from nearby oil fields to energize mobile mining stations in large quantities. It was estimated in a CNBC report that they made a profit of millions back in 2021. In comparison, the situation in Iraq is more challenging due to the country being the world's top emitter of flare gas pollutants. Converting these pollutants into functional electricity would require a massive and unique effort. But as Iraq is presently dealing with domestic energy needs and foreign debt, augmenting the power grid could relieve some national strains. Moreover, transforming some of that power into Bitcoin mining could multiply the positive effects.
In addition to Bitcoin mining, the energy secured from captured flare gas could also be utilized for earning carbon credits. Hypothetically, by capturing flare gas, Iraq could trim its carbon footprint and gain on the international market by selling carbon credits on the blockchain. This could serve as concrete evidence of the nation's eco-friendly measures and offer a temporary source of income as it works to gradually reduce dependency on fossil fuels.
Published At
4/16/2024 10:09:09 PM
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