Equinor (NYSE: EQNR), the Norwegian state-backed energy company listed in the U.S., has entered the bitcoin mining sector through a partnership with Crusoe Energy Solutions. The project uses natural gas that would otherwise be flared during oil production in North Dakota to generate electricity for bitcoin mining operations, highlighting a growing intersection between legacy energy infrastructure and digital asset mining.
Using stranded gas instead of burning it off
According to information cited by Arcane Research, the collaboration is designed to reduce flaring from oil operations by redirecting excess gas into mining infrastructure. The gas used in the project is described as a byproduct of oil extraction from the Bakken oil field in the United States. In the oil and gas industry, flaring has long been used as a practical safety and process-control method, especially when gas cannot be efficiently captured, processed, or transported. Still, the practice is frequently criticized as both wasteful and environmentally harmful.
Lionel Ribeiro, the project lead, said cryptocurrency mining requires large amounts of electricity, while gas flaring wastes a valuable commodity and creates emissions. By linking those two problems, he argued, the partnership can address both needs without adding market costs. He described the model as a “disruptive and scalable solution” that narrows the gap between where energy is produced and where it is ultimately consumed, while also reducing carbon footprint.
Crusoe’s modular flare mitigation system
Denver-based Crusoe Energy Solutions provides what it calls digital flare mitigation (DFM) technology. The company says its modular and portable systems are built for modern shale operations and can process volumes ranging from 50,000 cubic feet of natural gas per day to millions of cubic feet per day. Crusoe also says the equipment can operate across a broad range of gas compositions and includes emissions-control technology and catalytic converters intended to significantly reduce NOx, CO, VOC, and methane emissions compared with traditional flare exhaust.
The company had already attracted significant investor attention before this project. In December 2019, Crusoe raised $70 million in an equity funding round led by Bain Capital and KCK Group, underscoring market interest in technologies that convert otherwise wasted energy into power for digital infrastructure.
Efficiency, innovation, and climate strategy
Hans Jakob Hegge, Equinor’s U.S. country manager, said the company needs to make bold choices to improve cost-effectiveness and energy efficiency. He added that innovation remains a core strategic pillar in meeting Equinor’s climate roadmap ambitions, and that new technologies can help improve operational performance.
The Equinor initiative is part of a broader industry trend. The report also referenced companies such as Upstream Data and Greenidge Generation, which have explored ways to use excess gas for bitcoin mining rather than letting that energy go to waste. For the crypto sector, the model offers a way to place computing power closer to the source of energy. For energy producers, it presents a potential tool to increase the value of stranded gas while addressing some of the criticism associated with routine flaring.