Oman in wooden sign

Oman backs US-based natural gas-powered block reward mining pioneer company

Oman, officially the Sultanate of Oman, plans to use block reward mining to cut down its contribution to gas flaring. The country has taken an equity stake in Crusoe Energy Systems Inc., a U.S.-based company that is one of the pioneers of using stranded natural gas to power block reward mining. 

According to a Bloomberg report, the Middle East country’s sovereign wealth fund, the Oman Investment Authority (OIA), revealed this in a statement. The fund participated in Crusoe Energy’s $350 Series C funding round completed in April. 

Both the OIA and Crusoe Energy declined to reveal the size and terms of the stake, but the deal will see the company launching operations in the country. Crusoe Energy will deploy power generators and block reward mining equipment for capturing gas at oil-well sites. 

Bloomberg notes that the company held a workshop with Oman’s biggest oil companies including OQ SAOC and Petroleum Development Oman earlier this week. Chase Lochmiller, the company’s CEO, stated that the Denver-based company will open an office in Muscat, Oman. 

“We’ve always felt it was important for us to have a presence in the MENA region, given its share of global flaring. Having the buy-in from nations that are actively trying to solve the flaring issues is what we are looking for,” Lochmiller said. 

Oman’s motivation for partnering with Crusoe Energy 

Oman, along with other Middle East and North African countries, currently contributes around 38% of the world’s flare. However, Oman’s government has reportedly signed on with the World Bank to cut its flaring to zero by 2030. 

The partnership with Crusoe Energy will help it achieve this aim. The company plans to have launched a pilot mining operation by the end of this year or early 2023.

Crusoe Energy is one of the companies changing the negative environmental, social, and corporate governance (ESG) narrative of digital currency block reward mining. The company was recently recognized by the World Bank for its “innovative” solution to generating energy. 

Crusoe Energy has recorded success in its operations in other regions including the U.S. where it set to partner with ExxonMobil for a pilot project. 

Regardless, digital currency block reward mining continues to get a bad rap from many jurisdictions. This is easily emphasized by the EU proposal to ban proof-of-work blockchains that fell through at the last moment.

Watch: BSV Global Blockchain Convention panel, Blockchain Mining & Energy Innovation

YouTube video

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.