MARA, formerly known as Marathon Digital Holdings, has announced an innovative new project in collaboration with NGON. The two companies are launching a 25MW micro data center operation at oil wellheads across Texas and North Dakota, scheduled to become operational by January 2025. This project aims to reduce methane emissions by using excess natural gas from oilfield operations to generate electricity, instead of flaring the gas.

Tackling Flaring with Innovation

The use of natural gas to power the micro data centers offers a sustainable solution for methane mitigation. Traditionally, excess natural gas from oil wells is flared—burnt off as a waste product—which converts methane to CO2, a less potent greenhouse gas. However, flaring is only 92% efficient, meaning a significant amount of methane still escapes into the atmosphere. MARA’s solution claims to increase the combustion efficiency to 99%, dramatically reducing methane emissions.

Instead of wasting the gas, it is now transformed into usable energy, powering the company’s mining operations on-site. This approach provides an additional revenue stream for local oil producers while eliminating the need for flaring.

Key Benefits of the Micro Data Centre Initiative

Increased Methane Mitigation Efficiency:
By improving the combustion process from 92% to 99%, the project significantly reduces methane emissions compared to traditional flaring.
Economic Value On-Site:
The captured natural gas is converted into electricity, reducing operating costs for MARA’s mining operations while also creating economic value for oil producers.
Carbon Credit Opportunities:
The project aims to generate carbon credits through the Verra Registry by offsetting grid power and enhancing the sustainability of the overall operation.

A Step Toward Sustainability and Resilience

Fred Thiel, Chairman and CEO of MARA, emphasized the importance of the project, stating,

“Reducing methane emissions is one of the most immediate and impactful ways to improve our environment. These operations reduce costs by utilizing natural gas already produced on-site. As our first owned power generation assets, this project strengthens MARA’s vertical integration and operational resilience.”

This move toward greater vertical integration ensures MARA can optimize its operations by directly managing power sources while achieving lower operational costs.

MARA’s Broader Push for Sustainability

This project builds on MARA’s history of exploring alternative energy sources for Bitcoin mining. Highlights from MARA’s other sustainability efforts include:

Utah Landfill Pilot:
MARA launched a 280kW Bitcoin mining operation powered by landfill methane gas.
Finland District Heating:
MARA connected its mining facility to a local heating system, reusing waste heat from the operation to reduce energy waste.
Montana Transition:
In 2021, MARA ended its coal-fired power agreement in Montana and moved operations to regions with cleaner energy sources.

Despite the company’s progress toward sustainable energy, MARA still relies heavily on the U.S. power grid, which remains 80% dependent on fossil fuels. This new micro data center project helps MARA transition further toward green energy solutions while addressing the environmental concerns surrounding cryptocurrency mining.

A Broader Industry Trend: Reducing Flaring and Emissions

The concept of repurposing flared gas for data centers is gaining traction across the energy and tech industries. Companies like Crusoe Energy have demonstrated that burning methane directly for energy, rather than flaring it, reduces CO2-equivalent emissions by 69% in the short term.

As regulatory pressure mounts on the oil and gas sector to address emissions, projects like MARA’s represent a win-win scenario by:

Lowering emissions through efficient gas utilization.
Providing additional revenue to oil producers.
Improving environmental sustainability for the cryptocurrency industry.

Looking Ahead

With operations expected to go live in January 2025, MARA’s micro data center project will play a key role in mitigating methane emissions across oil wellheads in Texas and North Dakota. As MARA expands its owned power generation capacity, the company is better positioned to integrate vertically and reduce operational reliance on fossil-fuel-powered grids.

The project sets a strong example of how innovation in the energy and cryptocurrency sectors can converge to create meaningful environmental and economic impact. It also reflects a broader trend of using stranded energy resources for productive purposes—ensuring energy that would have been wasted now fuels digital asset infrastructure efficiently and sustainably.

This approach by MARA and NGON could pave the way for more collaborative projects between the oil and gas sector and tech companies, driving emissions reductions while generating value for all stakeholders involved.

Conclusion

MARA’s latest initiative showcases the company’s commitment to sustainability, operational resilience, and innovation in the digital asset space. As the world grapples with methane emissions and environmental concerns, MARA’s strategy of using excess natural gas to power data centers reflects a forward-thinking approach that aligns business growth with environmental responsibility.

This project stands as a powerful example of how oilfield byproducts can be harnessed to fuel the future—creating sustainable infrastructure while addressing one of the energy sector’s biggest environmental challenges.

Stay updated with MARA’s progress as the company pushes forward with its micro data center initiative and continues to explore innovative solutions for sustainable cryptocurrency mining.