Allied Energy has signed a natural gas purchase and sale agreement with River Energy Group and Louis Energy to power a cryptocurrency operation in Texas.
Under the agreement, Louis Energy has secured exclusive rights to purchase natural gas from the Thiel Well 1 in Washington County, Texas. The gas will power a cryptocurrency mining facility located near the wellhead.
Louis Energy will construct and manage the facility, which will have an initial capacity of 1MW, with the potential to scale to 2-3.5MW.
“This partnership is a major step for Allied Energy,” said George Monteith, CEO of Allied Energy. “By delivering sustainable energy solutions to the cryptocurrency sector, we are reinforcing our role in the growing natural gas market while driving long-term innovation.”
The partners claim that the collaboration will focus on delivering efficient and environmentally responsible natural gas utilization. In addition, Louis Energy has stated it is committed to meeting all regulatory requirements, securing the necessary permits, and maintaining high environmental and safety standards.
Louis Energy Gas Texas is an energy solutions company that focuses on powering cryptocurrency mining projects.
Allied Energy has already signed a natural gas supply agreement with a crypto firm for supply from its Thiel Well. In February 2023, it signed an agreement with Enerhash USA and River Energy Group to develop a 1MW site.
Allied Energy reworks existing oil and gas wells to increase their efficiency using hydraulic fracturing (fracking), among other techniques.
The company entered into a joint venture with River Energy Group, known as ‘Allied-River,’ in September 2022 to locate, secure, and allocate stranded natural gas and flared natural gas for the development of stand-alone microgrids.
Crypto firms are increasingly seeking off-grid natural gas supply deals to power their operations, with locations such as Texas and Alberta, Candana becoming notable hubs.
Last week, crypto firm Bitdeer acquired a 101MW gas-fired power project in Fox Creek, Alberta, Canada, where it plans to develop a 99MW Bitcoin mining operation. Construction is expected to begin in Q2 2025, with the site energized in Q4 2026.
Last year, Hyperscale Data launched a pilot project to explore the feasibility of Bitcoin mining powered by natural gas turbines operated by an undisclosed project partner.
Before this, MARA launched a 25MW micro data center operation across oil wellheads in Texas and North Dakota, powered exclusively by excess natural gas.
