Bloomberg News reports Oman’s sovereign wealth fund was found taking an equity stake in a firm in the United States and says that it helps producers of fossil fuel cut flaring by making use of stranded natural gas to power the mining of cryptocurrency.
Oman Investment Authority has been a part of the $350 million equity round that was raised in April by Crusoe Energy Systems Inc, according to a statement. Ismail Ibrahim Al-Harthi, who is the senior manager of technology investments associated with the Oman Investment Authority, revealed that the policy of the firm does not comment on the stake size. Crusoe also refused to divulge the terms.
Crypto mining is under scrutiny
Crusoe which is based in Denver will open an office in Muscat, Oman for helping to deploy power generators and mining equipment for capturing the gas at well sites, revealed by the Chief Executive Officer Chase
Lochmiller. The Middle East and North Africa constitute approximately 38% of the flaring in the world, meaning burning the natural gas which is in excess from the oilfields. This practice is under fire because the process releases harmful greenhouse gases that contribute to the worsening climate change.
Crypto mining is under scrutiny because it relies on the burning of natural gas and for being energy-intensive. Crusoe in the meantime is facing criticism from the climate experts who state the fact that the company is using gas that would otherwise go to waste does not nullify the fact that it is burning fossil fuel for crypto mining.
Bloomberg News reports that the company that is keeping all the coins that it mines focuses on setting up shop in the remote areas where economically it is not feasible to develop infrastructure to cut down flaring activities.
On Monday, Crusoe organized a workshop in Oman with the biggest producers in the country which include OQ SAOC and Petroleum Development Oman. The first pilot of the Middle East will be introduced by the end of the year or at the beginning of 2023, as stated by Lochmiller. While the drop in the price of Bitcoin prices will certainly have some impact on the top line revenue but it will have the least effect on expansion and growth.
Bloomberg News reports that the Oman government which had signed the World Bank’s initiative so that flaring could be put an end to by 2030, invested in Crusoe at the beginning of last year, thereafter increased the stake with the April round, as stated by Al-Harthi in a telephone interview.
Al-Harthi revealed in an email that Oman is committed to reducing greenhouse gases which is in line with the Paris climate agreement.
