Texas Senator Ted Cruz has just introduced the FLARE Act—a bill that turns waste energy into productive power. Announced on April 1, the legislation aims to reduce emissions and strengthen the energy grid by repurposing the natural gas that would otherwise be burned off.

Senator Cruz on X

The FLARE Act offers tax incentives to companies that capture and put that flared or vented gas to use.

That means businesses investing in systems that convert excess gas into electricity, liquid fuels or—crucially—computational power (like bitcoin mining) can immediately deduct the full cost of installing those systems from their taxable income.

By modifying the U.S. tax code, the bill encourages private investment in energy infrastructure and addresses environmental concerns. Cruz believes the FLARE Act could make Texas a leader in both bitcoin mining and energy innovation. He said:

“This bill takes advantage of Texas’s vast energy potential, reinforces our position as the home of the Bitcoin industry, and is good for the environment.”

Related: Bitcoin Mining Ideal For Oil And Gas Well Sites, Report

The bill targets “stranded” natural gas—the gas that can’t be transported economically and would otherwise be wasted.

Companies can use that gas to power bitcoin mining operations, create electricity for the grid or produce petrochemicals and fertilizers. To qualify for those tax benefits, businesses have to use approved infrastructure to convert the gas into something useful.

Foreign entities from China, Russia, Iran and North Korea are explicitly barred from participating in the program. That means the economic benefits stay within the U.S.

Industry leaders are backing the FLARE Act.

“This critical legislation will help eliminate unnecessary flaring and venting of natural gas while unlocking new opportunities for energy innovation in the United States,” says Hailey Miller of the Digital Power Network.

Bitcoin miners are uniquely positioned to help reduce emissions by harnessing and unlocking stranded energy.

MARA Holdings, a bitcoin mining firm, has already launched a micro data center operation in Texas and North Dakota—using excess natural gas to generate electricity for mining operations.

Natural gas flaring is common in the oil and gas industry where excess gas is burned off because it can’t be economically captured or transported. By repurposing this gas, the bill promotes cleaner energy and helps the U.S. get to a more sustainable energy future.

Also the bill can help strengthen the grid, especially in rural areas where excess energy goes to waste. Since bitcoin mining can be a flexible load it can easily absorb excess power when demand is low and reduce consumption at the push of a button when the grid is under stress.

This balance can help grid stability especially during extreme weather conditions.

Cruz has been talking about bitcoin mining and energy innovation for several years. At the 2021 Texas Blockchain Summit he said bitcoin mining could turn excess energy into something useful instead of wasting it through flaring. His new bill makes that a reality with financial incentives.

Cruz is encouraging his colleagues in the Senate to support the bill, saying, “I call upon my colleagues to expeditiously take up and advance this legislation”. The bill has been referred to the Senate Finance Committee where it will go through further review before a vote.

---

Filed under: Altcoins - @ April 3, 2025 11:17 am