The West Newton field, located near Hull in East Yorkshire, holds up to eight billion cubic metres of gas, according to multiple reports. The field could potentially supply a tenth of the UK's annual gas demand. Reabold Resources, the company behind the project, plans to build a small gas-fired power station at the site and use the electricity to mine Bitcoin. The field could theoretically produce around 50,000 Bitcoins, major media reports indicate.
The drilling licence issued by the Environment Agency does not permit full-scale fracking at West Newton. Energy Secretary Ed Miliband imposed a ban on full-scale fracking last year. However, lower-pressure fracking, the kind planned at West Newton, is still allowed. This regulatory distinction has drawn criticism from environmental groups and local councillors. According to the Daily Mail, Green Party councillor Andy Walker described the technique as fracking in all but name, saying: 'It may be called a well stimulation or a proppant squeeze. But if it walks like a duck and it quacks like a duck, … this is fracking.'
The Company is exploring the potential to deploy a small-scale power generation facility at the West Newton A well site to mine bitcoin from initial flows of gas following the upcoming well workover, to demonstrate the ability to use West Newton gas to fuel datacentre developments that will be crucial to the future UK economy.
Reabold Resources has stated that the site would ultimately be 'for the benefit of UK energy security'. The company is looking to 'ensure the optimal development pathway for West Newton is achieved'. In a statement, Reabold said it is exploring 'the potential to deploy a small-scale power generation facility at the West Newton A well site to mine bitcoin from initial flows of gas following the upcoming well workover, to demonstrate the ability to use West Newton gas to fuel datacentre developments that will be crucial to the future UK economy'. Stephen Williams, co-chief executive of Reabold, said Bitcoin mining could give way to developing a larger data centre. Another possibility is that Reabold will sell the site to another company once permissions are in place.
The exact timeline for the Bitcoin mining operation remains unclear, as does the amount of gas that will be used for mining versus potential future data centres. The estimated environmental impact of the lower-pressure fracking has not been disclosed. It is uncertain whether the project will proceed given opposition from environmental groups and councillors. The current status of the drilling licence and any required permissions is also unknown.