Flare Gas Mining: Turning Waste Into Opportunity
Every year, oil and gas operations burn off billions of cubic feet of natural gas — a process known as flaring. It's energy wasted, emissions released, and value lost.
At Hodlhash, we’re changing that.
Our flare gas mining systems capture that once-wasted gas and turn it into usable electricity — powering modular mining containers deployed directly at well sites. The result?
A cleaner, smarter, more profitable use of energy that would’ve otherwise gone up in smoke.
How Flare Gas Mining Works
Flare gas mining is the process of capturing natural gas that would normally be burned off at oil and gas sites and using it to power on-site cryptocurrency mining equipment.
Normally, this gas is considered waste — too remote or unprofitable to capture and sell. Instead, it’s flared, releasing CO₂ and other pollutants into the atmosphere.
Our system redirects that same gas through a cleaning skid and into a natural gas generator, converting it into electricity. That electricity powers a mobile crypto mining container located just feet away — eliminating the need for grid infrastructure and putting that energy to productive use.
It’s simple, effective, and turns a liability into an asset — all while helping reduce harmful emissions.
Why Flare Gas Matters
Flaring isn’t just wasteful — it’s one of the oil industry's biggest environmental and regulatory issues. Each year, millions of tons of CO₂ and methane are released into the atmosphere through routine flaring, especially in remote oilfields where traditional gas capture isn’t economically viable.
By converting this gas into usable energy on-site, flare gas mining directly supports:
- Emmission reduction goals
- Methane capture initiatives
- Carbon offset eligibility
- Permitting and report compliance
With increasing pressure from federal regulators, state agencies, and ESG-driven investors, operators are being pushed to limit flaring and show measurable environmental responsibility. Our flare-to-crypto systems help producers actively reduce emissions, convert waste into value, and demonstrate tangible progress toward sustainability benchmarks — all without disrupting their core operations.
This isn’t just about mining crypto — it’s about staying ahead of policy, preserving operational freedom, and turning unavoidable byproduct into a competitive edge.
Tax Incentives for Flare Gas Mining
Governments are beginning to recognize the environmental and economic value of converting flared gas into productive energy — and they're offering meaningful tax incentives to support it. Here are some of the key programs that benefit flare gas mining operators:
U.S. Federal (FLARE Act – Proposed)
- Immediate tax deduction for flare gas capture equipment.
- Designed to reward operators who reduce flaring and repurpose gas for power generation.
- Excludes foriegn-controlled entities to prioritize U.S.-based projects.
- Severance tax exemption on natural gas that would have been flared but is consumed on-site (e.g., in mining containers).
- Applies to gas used within 1,000 feet of the wellhead.
- Requires certification from the Texas Railroad Commission.
North Dakota (SB 2089 – Enacted)
- Offers up to $6,000 per well per month in tax credits for using flare mitigation systems.
- Credits are available for up to 12 months per well.
- Requires Industrial Commission approval.
- Severance tax exemption for natural gas that would have been flared but is instead consumed on-site (e.g., in crypto mining containers).
- Applies to gas used directly at the well site, promoting efficient energy use.
- Aims to support environmental responsibility and rural economic development through innovative gas repurposing.
- Sales and use tax exemption for tangible property and electricity used in commercial cryptocurrency mining.
- Also exempts utility gross receipts license tax on electricity used for mining operations.
- Enacted in 2021 to support industrial-scale mining and economic development.
- Proposed adding crypto mining to the list of qualifying data centers eligible for tax incentives.
- Would offer sales and income tax credits to mining operations.
- Not enacted — the bill was introduced in 2022 but did not pass.
- Proposed electricity tax exemptions for cryptocurrency mining operations.
- Included language to prohibit local restrictions specifically targeting crypto mining.
- Introduced in 2022, but has not been enacted into law.
At Hodlhash, we stay up to date on these programs and can help clients operate in the regions where flare mining offers not just environmental benefits — but real financial advantages.
How Hodlhash Helps
Hodlhash isn’t just an equipment provider — we’re a partner in execution. We work closely with oil and gas operators, landowners, and energy infrastructure teams to help design, deploy, and operate flare gas crypto mining systems that are both compliant and profitable.
Here’s how we support flare-to-crypto deployments:
- Site Analysis & Planning
We help assess flare output, site viability, and deployment logistics to determine if a location is suitable for on-site mining.
- Custom Container Builds
Our modular mining containers are optimized for off-grid, flare-powered environments. We provide shrouded, noise-reduced systems that meet compliance expectations from day one.
- Sourcing & Integration
We source high-efficiency ASIC miners and integrate them with gas-powered generators, skid equipment, and control hardware for seamless operation. - Deployment & Support
We provide consultation and setup assistance for mobile or permanent installs — from trailer-based units to large-scale modular stacks.
- Tax & Compliance Guidance
We track state and federal incentives and help clients understand how to qualify and maximize those benefits.
Whether you're a landowner looking to monetize flare gas, or a producer wanting to reduce emissions without waste, Hodlhash helps you deploy faster, operate cleaner, and earn more.
Who This Is For
Flare gas mining isn’t just a niche solution — it’s a strategic opportunity for anyone positioned near stranded energy or oil & gas infrastructure. If you’re sitting on wasted gas or looking for smarter, quieter ways to mine crypto, this is built for you.
Here’s who benefits most from Hodlhash flare-to-crypto systems:
Oil & Gas Producers
- Monetize gas that would otherwise be flared.
- Reduce emissions and improve ESG performance.
- Qualify for tax credits while generating new revenue.
Landowners & Operators
- Host mobile or semi-permanent mining systems on flare-active land.
- Earn passive income from natural gas without pipeline infrastructure.
Crypto Mining Investors
- Deploy operations off-grid with reliable, low-cost energy.
- Enter energy-rich areas without power constraints or utility rates.
Infrastructure & EPC Teams
- Integrate Hodlhash mining systems into flare capture, skids, and generator systems as part of broader energy optimization projects.
If you have gas being wasted — or land that could support this — we’ll help you put it to work.
What Others Are Saying About Flare Gas Mining
Talk about your brand
“Bitcoin miners are turning to flare gas to power rigs in remote oil fields”
"In places like Texas and North Dakota, flare gas—normally wasted—is now fueling mobile Bitcoin mining containers."
U.S. Energy Information Administration (EIA):
“In 2022, approximately 144 billion cubic feet of natural gas was flared in the United States. Flare mitigation through on-site generation has become a feasible solution in remote regions.”
"Bitcoin mining using stranded natural gas is the most cost-effective way to reduce emissions"
"Mitigating natural gas flaring by mining bitcoin is a more cost-effective way of reducing greenhouse gas emissions than building wind or solar plants."
Beyond Bitcoin: What Other Cryptocurrencies Can You Mine in 2025?
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When people hear "crypto mining," most think of Bitcoin. And while it's the most well-known proof-of-work coin, it's far from the only one. In fact, there's a wide array of mineable cryptocurrencies that offer unique benefits — faster transactions, greater privacy, energy efficiency, and sometimes even better profitability depending on your setup.
Here’s a breakdown of some of the top mineable cryptocurrencies, what makes them unique, and why you might consider mining them — especially if you're powering your rigs with flare gas.
1. Dogecoin (DOGE)
- Algorithm: Scrypt
- Key Trait: Merged-mined with Litecoin, allowing miners to earn rewards from both chains simultaneously.
- Why Mine It: High community adoption, fast block times, and compatibility with many Scrypt miners.
2. Litecoin (LTC)
- Algorithm: Scrypt
- Key Trait: One of the oldest and most stable coins; often seen as “digital silver” to Bitcoin’s gold.
- Why Mine It: Steady demand, relatively low difficulty, and dual mining potential with Dogecoin.
3. Kaspa (KAS)
- Algorithm: kHeavyHash
- Key Trait: Ultra-fast block times and DAG-based architecture.
- Why Mine It: Known for extremely fast confirmations and high energy efficiency.
4. Aleo (Testnet/Upcoming)
- Algorithm: zkSNARKs (zero-knowledge proof mining)
- Key Trait: Privacy-first platform that uses zero-knowledge proofs to secure smart contracts.
- Why Mine It: Represents the bleeding edge of privacy and Web3 computation.
5. Ethereum Classic (ETC)
- Algorithm: Etchash
- Key Trait: Original Ethereum chain, maintained after the DAO fork.
- Why Mine It: Still proof-of-work after Ethereum moved to proof-of-stake.
6. Bitcoin Cash (BCH) & eCash (XEC)
- Algorithm: SHA-256
- Key Trait: Forks of Bitcoin with faster and cheaper transactions.
- Why Mine Them: Easily mineable on the same hardware as Bitcoin, offering diversification without additional infrastructure.
7. Monero (XMR) (CPU-Mined)
- Algorithm: RandomX
- Key Trait: Fully anonymous transactions and ASIC resistance.
- Why Mine It: Great for CPU miners and privacy enthusiasts — often used in niche and decentralized setups.
Why Coin Variety Matters
Each cryptocurrency has its own use case (payments, privacy, smart contracts), its own algorithm (impacts hardware compatibility), and different network difficulty and reward systems.
By diversifying the coins you mine, you hedge against volatility, maximize use of available hardware, and target profitability based on algorithm, not hype.
🌍 Flare Gas + Altcoin Mining = Massive Opportunity
At HodlHash, we’re not just focused on Bitcoin. We help our clients mine a range of coins using sustainable, flare gas-powered infrastructure — transforming waste energy into digital assets.
Mining doesn’t stop at BTC, and neither should your strategy.
Ready to Turn Waste Into Revenue?
Talk about your brand
If you're flaring gas, you're burning money.
At Hodlhash, we turn stranded energy into productive mining infrastructure — quietly, cleanly, and with full support from planning to deployment. Whether you're an oil producer, landowner, or investor, we’ll help you build a flare-to-crypto system that makes environmental sense and financial sense.
Let’s put that wasted energy to work.
Contact us today to start your flare mining project.
