UK energy investment firm Reabold Resources is considering introducing bitcoin (BTC) mining equipment using a gas field in northern England, fuelling a debate between energy security and business viability.

On April 20 local time, blockchain media outlets Coindesk and The Block reported that Reabold Resources is reviewing a plan to build small-scale power generation facilities using gas produced from the West Newton A well in Yorkshire and use that power for bitcoin mining. The company said the idea is a pilot project aimed at verifying the long-term potential of using it as a power source for data centres.

Reabold, headquartered in London, has invested in European gas projects and aims to demonstrate a data centre development model that uses on-site gas through the plan. Co-CEO Sachin Oza (사친 오자) said using its own gas supply could allow it to operate mining data centres at relatively low cost. He added that at an early stage it could help secure funding for additional gas field development and verify business viability.

The plan faced criticism soon after it was made public. The UK's Daily Telegraph questioned whether it is appropriate to use gas for mining at a time when energy supply uncertainty is growing due to rising tensions in the Middle East. With the West Newton gas field assessed as having substantial reserves, a key point of contention has been that resources could be used for bitcoin mining rather than energy supply.

Reabold, in a follow-up explanation, stressed that bitcoin mining is not at the centre of its business. The company said West Newton's onshore natural gas resources will be developed in a way that contributes to UK energy security, and that the mining plan is only a limited demonstration using initial gas flows. It added that it is also considering existing options in parallel, such as supplying the national gas grid or selling to industrial complexes.

In practice, the scope under review is limited to operating small power generation facilities using initial gas that arises after well maintenance. The company aims to verify whether on-site gas can be used as data centre power, and is also exploring the possibility that it could lead to larger-scale data centre development in the long term.

Environmental groups and some experts, by contrast, are strongly opposed. Along with opposition to new gas field development and fracking itself, they argue that using fossil fuels for mining does not align with the public interest amid rising energy costs and pressure to meet climate goals.

Reabold's idea also intersects with a trend in which the bitcoin mining industry is expanding into high-performance computing and artificial intelligence (AI) infrastructure. That is because it seeks to use mining not as a simple profit business but as a means to demonstrate a model for using power for data centres.

Two issues will be key going forward. One is whether a business model that combines bitcoin mining and data centre operations using gas field-based power can secure economic viability in practice. The other is whether the idea can secure social acceptance in Britain amid debates over energy security and the environment.