Canaan launches gas-to-computing pilot to reduce flared emissions

SINGAPORE - Crypto mining innovator Canaan Inc. (NASDAQ:CAN), currently valued at $511 million, announced Monday the launch of a pilot mining project in Calgary, Alberta, that aims to convert flared natural gas into power for high-density computing operations. The company’s stock has shown significant volatility, with a 61.6% surge over the past six months despite recent pullbacks. InvestingPro analysis reveals 14+ additional investment insights about Canaan’s market position and growth potential.

The initiative, established through a joint mining agreement with Calgary-based Aurora AZ Energy Ltd., will deploy over $2 million worth of Avalon A15 Pro miners at natural gas wellheads, creating approximately 2.5 megawatts of computing capacity. This investment comes as Canaan reports revenue of $345 million in the last twelve months, though InvestingPro data indicates the company is currently experiencing cash burn challenges.

By utilizing natural gas that would otherwise be flared, the project is expected to eliminate an estimated 12,000 to 14,000 metric tons of CO₂-equivalent emissions annually. The system connects natural gas extraction, power generation, and computing operations within a single modular architecture.

Under the agreement, Canaan is guaranteed 90% uptime, with limited exemptions for extreme weather conditions and scheduled maintenance. During periods of curtailment, the company will participate in economic benefits from selling excess power back to the grid through demand-response programs.

"This initiative represents a major step in demonstrating how computing infrastructure can evolve alongside energy innovation," said Nangeng Zhang, chairman and CEO of Canaan, in the press release.

The project comes as Alberta reportedly flared more than 900 million cubic meters of natural gas in 2024, according to the Alberta Energy Regulator, representing a significant opportunity for energy recovery.

The pilot aims to demonstrate the technical and economic viability of wellhead power generation for bitcoin mining and other high-density computing applications while improving energy utilization efficiency and sustainability.

In other recent news, Canaan Inc. reported that its deployed hashrate has reached 9.30 EH/s, with 7.84 EH/s in operation as of September 30. The company mined 92 bitcoins in September and maintains record cryptocurrency holdings of 1,582 bitcoins and 2,830 ETH. Additionally, Canaan secured its largest mining machine order in three years, with a purchase of over 50,000 Avalon A15 Pro machines by a U.S.-based bitcoin miner. This order is expected to be delivered in the fourth quarter of 2025. Meanwhile, Soluna Holdings has settled all outstanding matters with NYDIG, clearing the path for future growth. The company also announced that it has regained compliance with Nasdaq’s continued listing requirements. These developments highlight significant movements in the cryptocurrency and data center sectors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.