Idle gas facilities situated in East Yorkshire might find new purpose in cryptocurrency mining, according to recent corporate statements.
Partners involved with the West Newton sites, situated in Holderness, have revealed intentions to utilize gas extracted from the wells to generate electricity. This electricity would then be employed in the complex process of Bitcoin mining. Official statements can be found here and here.
Rathlin Energy, the operator of the site, has reportedly entered into a preliminary, non-binding agreement with 360 Energy Inc, a Texas-based entity. The purpose of this collaboration is to engineer a solution specifically designed for Bitcoin mining operations.
Notably, Rathlin Energy acknowledged in the prior year a shortfall in funding, raising concerns about the company’s capacity to fulfill its obligations regarding drilling and eventual site abandonment at West Newton.
The recent corporate announcements emphasized the proposed project’s potential to deliver “an innovative and significant near-term value generating opportunity, providing early production and cash flow in advance of any planned full gas field development decision.”
However, reactions from investors in Reabold Resources and Union Jack Oil, another partner involved in West Newton, have reportedly been met with skepticism this morning.
The publicized plan outlines an initial phase focused on West Newton-A, featuring an on-site data center fueled by electricity derived from burning gas sourced from the A2 well. Subsequent expansions would incorporate the West Newton-A1 well and extend to West Newton-B, utilizing the B1z well.
The execution of this ambitious venture is contingent upon securing the necessary planning permissions.
Currently, West Newton-A possesses permits authorizing gas production for a duration of 20 years. However, practical work at the location has been dormant for the past six years. An application for environmental consent for lower-volume hydraulic fracturing of the A-2 well is currently under review.
Regarding West Newton-B, existing planning permission allows for the drilling of an additional well. However, authorization for gas production is absent. Operational activities at West Newton-B have ceased since December 2020.
Reabold Resources, holding a substantial 79.8% share in Rathlin Energy, conveyed that Bitcoin mining is projected to “complement both the early production scheme and the full field development” at West Newton.
Sachin Oza, co-chief executive of Reabold Resources, elaborated further:
“We believe that the creation and accumulation of new Bitcoin through mining operations offers a significantly enhanced, sustainable return, and one which is superior to simple cash purchases and accumulation of Bitcoin on the balance sheet, popularly referred to as a Bitcoin treasury strategy.
“The accumulation of mined Bitcoin, taking advantage of Rathlin’s access to extremely low cost energy, is both a precursor and supplement to the unlocking of the substantial low-cost natural gas at West Newton, which we believe will play an invaluable role in UK energy security in the years ahead.”
He further postulated that West Newton’s favorable operating costs could render it “ideal” for supporting data centers dedicated to artificial intelligence applications.
Notably, both Mr. Oza and his fellow co-chief executive, Stephen Williams, hold director positions at Kryptobyte Limited. This entity underwent a name change today from Yorkshire Data Centre Services Limited, having previously been known as Reabold Investments UK Limited. In April 2025, the company submitted financial statements classifying it as a “dormant company.”
Union Jack, which maintains a 16.665% stake in the West Newton field, asserted:
“The relationship with 360 Energy has the potential to enable the Joint Venture partners to realise significant returns from natural gas volumes via wells that would not otherwise contribute to either the early production scheme or the full field development”.
David Bramhill, Union Jack’s executive chairman, commented that “regulatory uncertainty” has impeded progress at onshore ventures, including West Newton. He suggested that onshore developers have been “forced to ‘think outside the box’ in order to make progress and deliver growth.”
In the preceding year, the operators of a temporarily suspended oil site in West Sussex explored the feasibility of employing geothermal heat for the purpose of tea production. (This proposed plan was ultimately not implemented, and the site’s planning permission has since lapsed.)
Mr. Bramhill added:
“The Board of Union Jack believes this proposed concept to produce Bitcoin through mining operations is innovative, offers strong scope for a sustainable return and could lead to the Company introducing a new Bitcoin Treasury strategy, on success.
“In addition, we believe that 360 Energy’s association with West Newton is complementary to Union Jack’s position as a profitable, transatlantic oil and gas business with production in both the UK and USA.”
“Pure theatre”
Comments from Union Jack shareholders range from warning to “beware of the ‘Emperor’s new clothes” to dismissals such as “a gimmick” and “Gas-to-bitcoin will never happen, it’s pure theatre”.
The process of Bitcoin mining – essentially the validation of cryptocurrency transactions – is a process that requires substantial electricity consumption.
The IMF estimated a year ago that the energy required for a single Bitcoin transaction equates to the average electricity consumption of an individual in Ghana or Pakistan over a three-year period.
One Union Jack investor has questioned whether West Newton’s generating capacity will meet Bitcoin mining’s significant energy needs.
Comments responding to Reabold Resources’ announcement expressed similar doubt. The company’s share value saw a decline this morning, moving from 0.06p to 0.052p. One reaction simply stated, “The market is understandably unimpressed.”
Another referred to the plan as “more pie in the sky.” Yet another considered it “On the face of it this appears to be bandwagon stuff”, while acknowledging that the high energy demand stemming from AI could potentially create a loophole for oil and gas firms to work within net-zero strategies.
The potential environmental cost of Cryptocurrency is a concern. The IMF predicts that crypto mining could account for 0.7% of worldwide carbon dioxide emissions by 2027.
Rathlin Energy states on its corporate website that it understands that climate change is a global concern and affirms that its West Newton gas project “aligns with the UK’s commitment to net zero carbon emissions by 2050”.