Texas Senator Proposes Bill to Harness Waste Energy for Eco-Friendly Bitcoin Mining

Texas Senator Ted Cruz has introduced a bill aimed at repurposing waste from energy resource extraction for mining Bitcoin.

The proposed legislation, known as the «FLARE Act,» focuses on utilizing so-called «stranded» natural gas for mining purposes. This category includes not only economically unfeasible extraction sites but also associated gas that is often flared off at oil fields due to the lack of profitable commercialization options.

Cruz’s proposal seeks to fully reimburse Bitcoin miners for the costs of equipment used to generate electricity from these sources. He believes that this would decentralize energy generation and enhance the resilience of the power grid during high-demand periods or extreme weather conditions.

«This legislation leverages Texas’s vast energy potential, strengthens our position as a hub for the Bitcoin industry, and is beneficial for the environment,» the senator asserted.

Cruz reaffirmed his commitment to transforming the state into the leading destination for mining. The FLARE Act incentivizes entrepreneurs to make use of natural gas that would otherwise be wasted, he added.

The Digital Power Network, an industry association, has shown support for the bill. Haley Miller, the director of government relations and public policy, noted that the legislation opens doors for «energy innovations in the United States.»

«By fully offsetting the costs of the infrastructure needed to capture and utilize flared gas, this bill creates strong incentives for industries, including Bitcoin mining, to productively use otherwise squandered energy, thereby strengthening the grid and stimulating economic growth,» she emphasized.

In Texas, two students established Giga Energy Solutions in 2019 to mine cryptocurrency using energy from flare gas.

One of the most notable players in this sector is Crusoe Energy Systems, based in Denver, Colorado. After acquiring the assets of competitor Great American Mining in 2022, the company has expanded its operations across six states.

It’s worth noting that in 2024, the environmental organization Greenpeace USA quietly concluded its «Change the Code» campaign aimed at addressing pollution caused by cryptocurrency mining.