Reabold rejects Bitcoin-mining plans for West Newton field

Reabold Resources said it will develop the West Newton onshore gas field in Yorkshire for UK energy security and denied that the site will be dedicated to Bitcoin mining. The company is exploring a limited, on-site gas-fired power test to assess options for initial flows after upcoming well work.

The company holds a licence from the Environment Agency for limited, low-pressure well work at West Newton A near Hull. Reabold estimates the field could contain up to eight billion cubic meters of gas. Industry estimates indicate that, if fully developed, that volume could meet more than 10% of current UK gas demand.

Reabold described any initial power generation as small-scale and intended as a demonstration of how early gas flows could be used. The firm said such a demonstration would be separate from plans to supply gas to industrial users or to connect the site to the national gas network.

Co-CEO Sachin Oza has outlined that a private gas supply could allow the company to operate a data centre that mines Bitcoin at lower cost, and that initial mining could help fund further development and test the concept for a larger facility. The company stated that successful implementation of a small project “could allow for the development of a larger-scale data centre at site, which would not preclude the potential for gas to grid, or gas to industrial consumption development options.”

Environmental groups have criticized proposals to use new gas flows for Bitcoin mining. Lorraine Inglis, who leads an anti-fracking campaign group, said using the gas to power Bitcoin mining “is not energy security or any genuine public benefit but the deliberate burning of fossil fuels for one of the most energy-intensive and socially questionable activities at a time of high bills and missed climate targets.”

Reabold emphasised that UK energy security is a priority amid geopolitical uncertainty and said it will continue to engage with local and national stakeholders to determine the development pathway for West Newton while it assesses short-term demonstration options and longer-term supply routes.