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AXP Energy’s Pathfinder #1 well starts pumping into gas-to-power Bitcoin mining operation

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By Imelda Cotton - 
AXP Energy ASX Pathfinder #1 first gas-to-power-bitcoin mining
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AXP Energy (ASX: AXP) has reported that the #1 well at its Pathfinder onshore oil and gas field in Colorado is on pump and contributing to a gas-to-power Bitcoin mining operation.

The well is producing hydrocarbons at the Greenhorn Formation in the Florence field for the first time, generating frac fluid and 60 barrels of oil during the first seven days of pumping.

Pathfinder #1 is tied to the Vespucci and Pathfinder #2 gas gathering system, which is powering the generators and miners.

Bitcoin mining

AXP is partnering with BitFuFu Inc on the gas-to-power Bitcoin project, which involves using natural gas from Pathfinder to generate electricity to power Bitcoin mining operations.

It repurposes “stranded” or otherwise unutilised gas and leverages this power source for high-performance computing, including artificial intelligence and rendering.

The project’s first gas-to-power site has three wells delivering natural gas at the rate of 260 million cubic feet per day to two generators powering 530 ASIC Bitcoin miners BitFuFu has supplied.

Proven concept

AXP managing director Dan Lanskey said the first site had demonstrated that, with adequate gas supply, it could duplicate the concept of off-grid, gas-to-power generation running Bitcoin mining operations at multiple sites and at scale.

“Our first off-grid gas-to-power site is operating reliably and we are working with our end-users to deliver other reliable sources of off-grid gas and power so we can scale very quickly,” he said.

“It is exciting to have proven the model with this first site in Colorado and with the enormous growth opportunity for off-grid gas and power in the US—we have a very unique opportunity and the right partners to do this in a market where we can deliver output much more rapidly to meet demand.”

Mr Lanskey said the company was assessing opportunities and new US jurisdictions for faster access to gas in order to increase current power generation from 1.5 megawatts per hour to 25MW/hr by year end.