Kazakhstan Turns to Flare Gas to Power Crypto Mining Revival

Kazakhstan Works Towards Bringing Crypto Miners and Flare Gas Energy Together

The government of Kazakhstan is trying to rearrange its crypto mining industry around a power source already being developed in other nations: flare gas.

After President Kassym-Jomart Tokayev signed the “On measures to stimulate and develop the digital asset industry in the Republic of Kazakhstan” decree in July, which called for a bill to provide a mechanism for companies to take advantage of gas opportunities in the digital mining field, there has been a rise in miners’ interest in these possibilities.

While Kazakhstan experienced a crypto mining boom in 2021, the energy footprint of these companies took its toll on the country’s aging infrastructure. The government cracked down on these activities and established an auction system to control how much power was used to mine digital assets, driving most of the industry out of the country.

Daniyar Mubarakov, Head of the Blockchain and Digital Mining Association, told Euro News that miners were ready to purchase and install equipment to convert this flare gas into usable power. He also estimated that the total flared gas production of Kazakhstan could be turned into 1.2–1.3TWh.