U.S. Senator from Texas Ted Cruz has introduced a bill aimed at utilizing waste energy from resource extraction for Bitcoin mining.

My legislation, the FLARE Act, incentivizes entrepreneurs and crypto miners to utilize natural gas that would otherwise be stranded. https://t.co/fvb1nog3ix pic.twitter.com/8uCWtyOY29
— Senator Ted Cruz (@SenTedCruz) April 1, 2025

The bill, titled the “FLARE Act” (Flaring Reduction Act), proposes using difficult-to-extract natural gas, including associated gas, which is flared at oil fields, to generate electricity for mining. According to Cruz, this will not only reduce atmospheric emissions but also improve the resilience of power grids during peak demand periods and extreme weather conditions.

Cruz suggests compensating Bitcoin miners for the costs of equipment that captures and utilizes this gas for energy production. He emphasized that this would strengthen Texas’ position as a hub for Bitcoin mining while promoting environmental sustainability in the region.

The bill has gained support from the Digital Power Network association. Haley Miller, the association’s director of government relations, noted that the bill will open new opportunities for using natural resources productively and support economic growth.

Several companies in Texas, including Giga Energy Solutions and Crusoe Energy Systems, are already mining using associated gas, and such initiatives continue to grow.