Los Toldos (ARG)
Repurposing associated petroleum gas supports decarbonization and drives new revenue streams1
Background
The Vaca Muerta basin, located in Argentina’s Patagonian region, is home to the world’s second-largest shale gas reserves and the fourth-largest shale oil deposits. Approved by the government in 2019, Los Toldos II Este is situated at the northern edge of the Vaca Muerta shale development. The 77-square-kilometer area was permitted for unconventional oil production for 35 years.
Los Toldos II Este has two locations. The main facility is in the northern section, where gas processing, power generation, and cryptocurrency mining take place. A secondary well pad and production facility are located eight kilometers south.
Solution
Demonstrating APG use in practice: Converting a byproduct into on-site power generation at Los Toldos. Unblock, a company focused on the development of flexible onsite computing infrastructure, has developed a solution that uses Jenbacher gensets running on associated gas. Secco, INNIO Group’s solution provider in Argentina, installed eight 1.5 MW Jenbacher generators at the site from June to December 2023. Chosen in part for their ability to run on a range of gas compositions, the Jenbacher generators produce up to 12 MW of power from a total gas volume of 50,000 cubic meters per day (1.8 million scf per day). Installation also included 12 modular data centers equipped with Antminer S19J Pro units, specialized Bitcoin mining computers, which process around 100 terahashes per second at an efficiency of approximately 30 J/TH.
Outcome
Unblock concluded a shorter well test at the southern site in December 2023 and connected it to the northern site with a 15-kilometer oil and gas pipeline. Bitcoin mining then began later that month. According to Capterio’s FlareIntel platform, very limited flaring was observed after the project began. Unblock expects about 82 Bitcoin-equivalents – roughly seven per month – will be mined each year. That’s based on the Jenbacher generators running at full capacity and generating 105 GWh annually. At prices of $100,000 per Bitcoin as seen in 2025, that can generate $8 million in revenue. With power costs of about $4 million per year and including operating expenses, operating cash flow is projected at $3 million, resulting in an expected payback period of four to five years.
By capturing the flared gas, the operator was able to test appraisal wells and increase production from the planned 270 barrels per day to 2,000 barrels per day – with no net increase in Scope 1 and 2 operational emissions. The additional revenue from increased oil production is estimated at $30 million per year. Today, Unblock estimates 99% of flares are captured, reducing annual emissions by about 100,000 metric tons of CO2-equivalent.
Customer benefits
- An unwanted byproduct is captured as an energy source, significantly lowering CO2-equivalent emissions.
- By avoiding gas flaring, the operator was able to test appraisal wells and increase production from 270 to 2,000 barrels per day with no net increase in Scope 1 and 2 operational emissions.
- Additional revenue from increased oil production is estimated at $30 million per year.
- The project contributed to training and employment opportunities, with 80 workers employed during construction and eight full-time staff.
1 The following information was sourced from Columbia Center on Sustainable Investment’s “Project Case Study: Los Toldos, Este II Field in Argentina” by Andrew Bernstein, Mark Davis, Tom Mitro, and Perrine Toledano. Los Toldos II Este is one of six case studies the group compiled in “Igniting Action to Reduce Gas Flaring: Real Opportunities. Real Projects. Real Results,” published in June 2025. Columbia Center on Sustainable Investment is a joint effort of Columbia Law School and Columbia Climate School.
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Installed engines
Electrical output
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Commissioned
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