Winklevoss Capital Backing Flare Mitigation of Natural Gas with Crusoe Energy Systems Financing
According to Bloomberg, the Winklevoss twins’ family office has participated in a seed financing for Crusoe Energy Systems Inc. to the tune of $4.5 million. Crusoe Energy has plans to advance construction of data centers that mine cryptocurrency using a surplus of natural gas.
A press release by Crusoe accompanying the seed financing explained that the company aims to reduce the noxious impact of flaring (burning off) on the environment by using this surplus. Normally the excess gas is more trouble than it’s worth to transport.
Flaring has a lot of regulatory restrictions, and rightfully so, but as long as natural gas is going to keep being extracted, flare mitigation could help resolve that problem. The natural gas could be converted into electrical power to be used later.
This financing round will accelerate the construction of their mobile modular data centers with their systems allegedly being scalable up to millions of cubic feet per day. They could also be employed across North America. Crusoe Energy Systems is led by Bain Capital Ventures and Founders Fund Pathfinder and had a press release outlined:
“Technologies for flare mitigation […] are capable of handling the large-scale gas throughputs required by today’s North American shale industry. Crusoe’s technology harnesses otherwise wasted energy for growing industries that require energy intensive computing, such as blockchain and artificial intelligence.”
Winklevoss Capital Sterling Witzke reportedly emailed a statement to Bloomberg, saying:
“Crusoe Energy is in a unique position to reduce the cost of cloud computing and cryptocurrency mining. Their technology is a win-win for the environment, energy producers, and the digital economy.”
In an interview with Bloomberg, Crusie co-founder Chase Lochemiller said they were working with publicly traded oil and gas companies.
Cointelegraph previously reported on the high energy consumption of some cryptocurrency mining efforts which has since sparked much debate on the futures of crypto and its use for a needed greener future. Then late summer 2018 saw a clean energy expert argue that the truth of the matter is not how much energy is being used but the source of the electrical power itself as well as the impact of traditional banking on power users worldwide.