Denver-based Crusoe Energy has found a home in the North American shale industry by converting flared gas to a power source for computer intensive datacenters. The company recently announced a new funding round by Bain Capital Ventures and others that will infuse $4.5 million into further development of the technology.
Crusoe has developed mobile, modular data-centers that can be placed at or near well sites. The data centers can then utilize associated gas from the wells that might otherwise be flared to power the data centers.
The company currently has flare mitigation projects operating or under development in the Bakken, Powder River Basin and DJ Basin. The systems are scalable up to millions of cubic feet per day and can be deployed anywhere in the U.S. or Canada, according to the company.
“We are committed to building advanced technologies for flare mitigation that are capable of handling the large-scale gas throughputs required by today’s North American shale industry. Crusoe’s technology harnesses otherwise wasted energy for growing industries that require energy intensive computing,” said Chase Lochmiller, co-founder and CEO of Crusoe, “such as blockchain and artificial intelligence.”
Salil Deshpande, partner at Bain Capital Ventures, said it was ironic and broken that oil and gas production in the U.S. is now limited by how effectively producers can handle gas production. “The scale and technical sophistication of Crusoe’s digital flare mitigation system, as well as its execution in the field is unique. Crusoe solves an important pain point for oil producers in the booming shale industry,” said Deshpande, “and we’re enjoying working with the team as they advance and scale digital flare mitigation service across the North America.”