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UK's Union Jack Oil to turn stranded gas into Bitcoin
oil-and-gas

UK's Union Jack Oil to turn stranded gas into Bitcoin

Union Jack Oil plans to convert stranded gas from West Newton into electricity for Bitcoin mining, pioneering UK’s oil-to-crypto monetization.

August 7, 2025
5 min read
Nate Kostar

Union Jack Oil plans to convert stranded gas from West Newton into electricity for Bitcoin mining, pioneering UK’s oil-to-crypto monetization.

Union Jack Oil, a publicly traded UK energy company, has announced plans to convert natural gas from its West Newton site into electricity to power Bitcoin mining. This move is seen as one of the country’s first "oil-to-crypto" monetization projects, potentially generating early cash flow from wells that would otherwise remain undeveloped. The project is a collaboration with Rathlin Energy and Texas-based 360 Energy, a company specializing in converting stranded or flared gas into power for on-site data centers. Through a non-binding letter of intent, the companies intend to deploy 360 Energy's In-Field Computing technology to commence Bitcoin mining directly at the West Newton A site, pending regulatory approvals. If successful, this initiative could lead Union Jack to adopt a new Bitcoin Treasury strategy, as stated by Executive Chairman David Bramhill.

West Newton: Discovered but Still Undeveloped

Union Jack Oil acquired its stake in West Newton in 2019. Following operator Rathlin Energy's gas discovery, subsequent drilling confirmed it as one of the largest onshore gas discoveries in the UK. However, development has been stalled due to planning delays and regulatory uncertainty, hindering the necessary infrastructure to bring the gas to market. Bramhill noted that "regulatory uncertainty has unduly hampered progress," impacting projects like West Newton despite their commercial viability. By utilizing the gas on-site for Bitcoin mining, Union Jack aims to generate revenue without being tied to traditional, lengthy development timelines. Bramhill described the venture as "innovative" and offering "strong scope for a sustainable return."

A Shift in How Energy Is Monetized

This initiative by Union Jack Oil reflects a broader trend among energy companies to monetize underutilized resources, particularly stranded or flared natural gas. The strategy involves converting gas into electricity on-site to power Bitcoin mining rigs, bypassing the costs and delays associated with grid connections or pipeline construction. Companies like 360 Energy and Crusoe are instrumental in developing modular and scalable solutions for this approach. This model is gaining traction globally, with examples including ConocoPhillips' pilot program in North Dakota to use excess gas for Bitcoin mining instead of flaring it, Tecpetrol in Argentina utilizing leftover gas for mining operations, and Canadian company AgriFORCE launching a similar venture in Alberta.
Originally published at Cointelegraph on Thu, 07 Aug 2025

Frequently Asked Questions (FAQ)

Q: What is Union Jack Oil's new project at the West Newton site? A: Union Jack Oil plans to convert natural gas from its West Newton site into electricity to power Bitcoin mining operations. Q: Who are Union Jack Oil's partners in this project? A: The company is partnering with Rathlin Energy and Texas-based 360 Energy. Q: What technology will be used for the Bitcoin mining? A: They aim to deploy 360 Energy's In-Field Computing technology. Q: Why is Union Jack Oil pursuing Bitcoin mining instead of traditional gas development? A: Regulatory uncertainty and planning delays have stalled traditional development. Bitcoin mining allows them to generate revenue from undeveloped gas reserves without waiting for lengthy approval processes. Q: What is the broader trend that this project represents? A: This project is part of a growing trend of energy companies using stranded or flared natural gas to power Bitcoin mining operations, turning waste into revenue.

Crypto Market AI's Take

This development by Union Jack Oil showcases an innovative approach to monetizing energy resources, directly aligning with the growing intersection of the energy and cryptocurrency sectors. By leveraging stranded natural gas for Bitcoin mining, the company is not only generating potential revenue streams from previously undeveloped assets but also contributing to a more sustainable energy model by reducing flaring. This strategy highlights the increasing adoption of Bitcoin mining as a flexible energy off-take solution. Our platform, Crypto Market AI, focuses on analyzing such convergence trends, providing insights into how emerging technologies like AI are impacting both the crypto market and traditional industries. For more on how companies are integrating crypto into their strategies, explore our insights on cryptocurrency treasury strategies.

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