A newly licensed gas field in East Yorkshire could be used to power Bitcoin mining, rather than deliver energy into the UK’s ailing power grid, according to reporting from the Telegraph.

Reabold Resources secured approval from the Environment Agency to carry out limited, lower-pressure fracking at the West Newton site near Hull. The field is estimated to hold up to 8 billion cubic meters of natural gas, one of the largest onshore discoveries in the UK market.

Rather than using the gas to deliver electricity to the grid, however, the company plans to build a gas power station on-site and use it to power a data center focusing on Bitcoin mining.

“A private gas supply means we can run a data center to mine Bitcoin relatively cheaply,” said Sachin Oza, co-chief executive of Reabold Resources. “Initially, this would help fund the further development of the gas field and prove the concept – meaning it could become the precursor to a far larger data center.”

The proposal has drawn the ire of environmental groups, who contend it conflicts directly with climate commitments and growing energy security concerns.

Lorraine Inglis, an anti-fracking campaigner, told the Telegraph: “The West Newton permit exposes everything that is wrong with the UK’s current approach to energy and climate. A new onshore gas field in 2026 is fundamentally at odds with our climate commitments.

“Using that gas to power Bitcoin mining is not energy security or any genuine public benefit but the deliberate burning of fossil fuels for one of the most energy-intensive and socially questionable activities at a time of high bills and missed climate targets.”

The development comes amid heightened sensitivity around energy supply following geopolitical tensions affecting global fuel markets. While full-scale fracking remains banned in the UK due to concerns over seismic activity, regulations do allow small-scale “stimulation” techniques such as those planned at West Newton.

Reabold has conveyed that Bitcoin mining may only be part of the initial phase of the project. Stephen Williams, co-chief executive, suggested alternative uses remain under consideration: “Alternatively, we could also sell the gas to one of the adjacent industrial centers or connect it to the national gas grid.”

London-based Reabold Resources focuses on high-potential, low-risk upstream oil and gas projects. In addition to the West Newton project, the company has acquired assets in Italy and Romania. The West Newton project would be its first data center project.