The governor proposes using associated gas to address the region’s energy challenges linked to bitcoin mining.
According to a report by the Interfax news agency, the governor of Russia’s Irkutsk province has put forward a solution to tackle the issues caused by bitcoin mining in the region: using associated gas produced during oil extraction.
In early April, the region implemented the first permanent ban on mining in the southern part of the oblast. This decision follows a winter ban imposed by Moscow just months earlier, prohibiting mining in 10 Russian regions until 2031.
Associated gas: an alternative for Bitcoin miners
Governor Igor Kobzev called on major mining operators to partner with oil and gas companies, with the aim of building data centers powered by “alternative fuel sources.”
During a regional address on April 25, Kobzev made it clear that the Irkutsk government is “not opposed to mining as a phenomenon.” However, he stressed the need to overcome power shortages, underlining the government’s responsibility to ensure uninterrupted electricity supply for local residents and businesses.
Kobzev stated:
“The regional government is ready to act as a platform to coordinate interaction between mining operators and enterprises working in the oil and gas production sector. There are already successful cases of firms building data centers powered by autonomous generation. These firms use associated gas.”
Russian oil companies have already begun collaborating with miners on pilot projects involving associated gas. Some of the country’s largest mining firms and oil producers — including BitRiver and Gazprom Neft — launched joint initiatives in 2022.
Kobzev appears determined to keep miners in southern Irkutsk off public grids, promising to support associated gas-powered mining projects “in every possible way.”
He also emphasized that such partnerships could help improve Irkutsk’s environment by reducing flaring — the practice of burning excess gas.
A win-win solution?
During crude oil extraction, producers often release pockets of natural gas (known as associated gas). If they lack the infrastructure to capture it, this gas is typically burned off using flare stacks.
Many industries are reluctant to use associated gas since it tends to generate intense but irregular bursts of energy, rather than stable continuous flows.
Some Russian miners, however, claim they’re willing to work with this type of energy supply — provided they can access it at discounted rates.
Kobzev expressed optimism but warned that failing to resolve the mining-related energy issues could push the capacity deficit in southeastern Siberia to nearly 3 GW by 2030.
Critics argue that efforts to ban mining in southern Irkutsk have instead driven up illegal operations in the region.
