A giant untapped natural gas field that could provide a tenth of the UK's annual demand will instead be used to mine Bitcoin.
The West Newton field near Hull, East Yorkshire, holds up to eight billion cubic metres of gas, which could significantly bolster the country's energy security.
But instead, Reabold Resources, the company awarded licence for 'gentle' fracking in the field, plans to build a small gas-fired power station and mine cryptocurrency.
This is the process by which new Bitcoins are obtained, and is one of the most energy-intensive digital exploits.
Their scheme has enraged environmental groups and councillors who oppose cultivating new gas fields - and fracking in particular.
It also does nothing to quell concerns that have arisen during the Iran war about the UK's energy and fuel security.
The Westfield Newton gas field is so large it could, in theory, produce around 50,000 Bitcoins.
The executives of Reabold Resources see an opportunity to draw a private gas supply from the field, and use it to run a data centre to mine.
There are plans for a datacentre to mine Bitcoin at West Newton Site A (pictured)
Drilling has already begun at West Newton Site B (pictured)
This requires powerful computers to solve complex puzzles, and results in new blocks being added to the blockchain.
Alternatively, West Newton could be use to help provide gas for the whole of the country.
The company insisted this morning that the Bitcoin mining proposal would ultimately be 'for the benefit of UK energy security', because it would 'demonstrate the ability to use West Newton gas to fuel datacentre developments that will be crucial to the future UK economy'.
The drilling licence issued by the Environment Agency does not permit Reabold to deploy full-scale fracking, which involves injecting pressurised water and chemicals into rock.
This creates cracks, which the subterranean gas can then flow through.
Energy Secretary Ed Miliband imposed a ban on this last year, after a fracking operation near Blackpool generated a series of minor earthquakes.
Lower-pressure fracking - the kind planned at West Newton - is still allowed.
Cllr Andy Walker, for the Greens, said of the permitted action: 'It may be called a well stimulation or a proppant squeeze. But if it walks like a duck and it quacks like a duck, … this is fracking.'
Stephen Williams, one of the co-chief executives at Reabold, said that while Bitcoin mining would be the first use of the gas, it could give way to developing a larger data centre.
Another possibility is that, once the relevant permissions are in place, Reabold will sell this site on to another company.
A statement from Reabold read: 'The Company is exploring the potential to deploy a small-scale power generation facility at the West Newton A well site to mine bitcoin from initial flows of gas following the upcoming well workover, to demonstrate the ability to use West Newton gas to fuel datacentre developments that will be crucial to the future UK economy.
'Successful implementation of such a project could allow for the development of a larger scale data centre at site, which would not preclude the potential for gas to grid, or gas to industrial consumption development options.
'Reabold believes that the natural gas resources at West Newton and further prospective resources on the PEDL 183 licence can be used for the benefit of all stakeholders and is committed to facilitating this outcome.'