Nigeria launches first flare gas-powered digital project

Dawcon Energy, an awardee of the Nigerian Gas Flare Commercialisation Programme (NGFCP), in partnership with Green Flare Holdings, Nigeria’s first flare gas-to-Bitcoin mining company, has signed a Gas Connection Agreement (GCA) with the Oil Mining License (OML) 30 Joint Venture.

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Dawcon Energy, an awardee of the Nigerian Gas Flare Commercialisation Programme (NGFCP), in partnership with Green Flare Holdings, Nigeria’s first flare gas-to-Bitcoin mining company, has signed a Gas Connection Agreement (GCA) with the Oil Mining License (OML) 30 Joint Venture.

This landmark agreement enables the commercialisation of flare gas derived from upstream oil and gas production and marks the launch of Nigeria’s first flare gas-powered digital infrastructure project.

Green Flare’s innovative gas-to-data solution uses otherwise flared natural gas to power modular data centres located adjacent to flare sites. The initial focus will be on Bitcoin mining, with plans to expand into AI computing and high-performance data processing. This will position Nigeria as a regional pioneer in climate-aligned digital infrastructure.

The agreement, developed under the regulatory oversight of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the NGFCP, follows extensive collaboration with the OML 30 Joint Venture partners, including Nigerian National Petroleum Corporation (NNPC) Exploration and Production (E&P) Ltd., Shoreline Natural Resources Ltd., and Heritage Energy Operational Services Ltd (HEOSL).

The first three launch sites, located in Delta State, are expected to deliver 53 megawatts (MW) of off-grid electricity using stranded gas. In addition to its industrial applications, the project includes plans to electrify underserved rural communities as part of a broader host community development initiative.

This project supports the federal government’s National Gas Expansion Programme and national efforts to eliminate routine gas flaring, a practice that has cost Nigeria billions in lost revenue and contributed to long-term environmental degradation.

As the 8th largest gas-flaring country globally, Nigeria loses gigawatts of potential energy every year. By harnessing flare gas for power generation, the Dawcon-Green Flare partnership contributes to emission reductions, energy security, and the growth of Nigeria’s digital economy.

“This agreement reflects the Commission’s commitment to translating Nigeria’s decarbonization policy into real, scalable outcomes. We congratulate the OML 30 Joint Venture, Dawcon, and its partners for collaborating to make this first of its kind project breakthrough possible. The Commission will continue to provide regulatory enabling support to all parties to achieve Nigeria’s climate goals,” said the NUPRC.

According to Efa Imoke, director of Dawcon Energy, “This GCA is not just a contract -it is a catalyst. It shows what’s possible when regulatory determination and innovation come together. It marks a milestone in the effort to monetize Nigeria’s flare gas potential, aligning the government’s energy transition ambitions, the rights of host communities and the development of digital infrastructure in Nigeria.

Reaffirming our commitment to responsible energy development, long-term value creation, and nurturing partnerships, Dawcon is proud to lead this charge alongside Green Flare and the OML 30 partners.”

Adeoye Fadeyibi, CEO of Green Flare Holdings, noted: “We are transforming wasted energy into productive assets, reducing emissions, and proving that Nigeria can lead Africa in clean, distributed computing. With this agreement, we are delivering climate impact, energy security, and digital infrastructure—together.”

Charles Majomi, co-founder of Green Flare Holdings, said: “For decades, flare gas was fire wasted to the sky—toxic, unclaimed, and forgotten. Today, with this agreement, we begin to rewrite that story—turning it into clean power for people, for technological progress, and for a future that doesn’t cost the Earth.”

BusinessDay