By Juliet Ebirim

In a significant step towards energy transition and digital transformation, Nigeria has launched its first flare gas-powered digital infrastructure project. This groundbreaking initiative follows the signing of a Gas Connection Agreement (GCA) between Dawcon Energy, an awardee of the Nigerian Gas Flare Commercialization Programme (NGFCP), and Green Flare Holdings, Nigeria’s pioneering flare gas-to-Bitcoin mining company, with the Oil Mining License (OML) 30 Joint Venture.

This agreement enables the commercialization of flare gas, a long-standing environmental and economic challenge in Nigeria. Green Flare’s innovative “gas-to-data” solution will convert otherwise wasted natural gas into clean energy for modular data centers located directly at flare sites. Initially focusing on Bitcoin mining, the project plans to expand into AI computing and high-performance data processing, positioning Nigeria as a regional leader in climate-aligned digital infrastructure.

The project, developed under the regulatory oversight of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the NGFCP, is a result of extensive collaboration with OML 30 Joint Venture partners, including 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 generate 53 megawatts (MW) of off-grid electricity from stranded gas. Beyond industrial applications, the initiative also includes plans to electrify underserved rural communities, marking a significant step in host community development.

This project directly supports the Federal Government’s National Gas Expansion Programme and its broader efforts to eliminate routine gas flaring. Nigeria, the world’s 8th largest gas-flaring country, loses gigawatts of potential energy and billions in revenue annually, while contributing to long-term environmental degradation. By transforming this waste into power, the Dawcon-Green Flare partnership is set to reduce emissions, enhance energy security, and significantly boost Nigeria’s digital economy.

In a statement, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) expressed optimism about the project’s potential. “This Agreement reflects the Commission’s commitment to translating Nigeria’s decarbonization policy into real, scalable outcomes. The Commission will continue to provide regulatory enabling support to all parties to achieve Nigeria’s climate goals.”

While emphasizing the broader implications of the agreement, Efa Imoke, Director of Dawcon Energy said “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 government’s energy transition ambitions, the rights of host communities and the development of digital infrastructure in Nigeria.”

Furthermore, Adeoye Fadeyibi, CEO of Green Flare Holdings, highlighted the benefits thus: “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.”

“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.” Co-Founder of Green Flare Holdings, Charles Majomi noted.