With its gas stuck underground as it awaits regulators to approve its pipelines, a British drilling company is plotting a pivot to Bitcoin.
Union Jack Oil, a UK- and US-focused onshore energy firm, says it’s exploring a plan to convert stranded natural gas from its West Newton project into electricity to power Bitcoin mining rigs at the wellhead.
The idea is part of a proposed partnership with Texas-based 360 Energy, which specialises in turning low-value or flared gas into crypto.
The concept — known in the industry as gas-to-hash — is already popular in parts of the United States, where oil producers have used it for years to monetise waste gas.
But this would be one of the first serious attempts to bring the model to the UK, where Bitcoin mining is minimal and energy regulations are generally stricter.
The UK currently accounts for less than 0.3% of global Bitcoin hashrate, according to recent estimates. That’s a fraction of what’s seen in the US, which accounts for around 38%. Germany, by comparison, contributes close to 3% despite having similarly high energy costs.