Largest European Telecom Begins Bitcoin Mining
Deutsche Telekom, Europe’s largest telecommunications provider, has announced a pioneering pilot project to operate Bitcoin mining infrastructure using surplus renewable energy. The initiative is a collaboration between Deutsche Telekom subsidiary MMS and Bankhaus Metzler, aiming to utilize excess electricity that would otherwise remain unused due to grid limitations or lack of storage solutions.
Deutsche Telekom Starts Bitcoin Mining
With the increasing integration of renewable energy sources like wind and solar into the power grid, energy production has become more irregular, leading to challenges in grid stabilization. The pilot project seeks to address this by converting surplus energy into digital assets through Bitcoin mining, a process known for its high energy consumption. “This regulating power through Bitcoin mining is already successfully practiced in other countries (including the USA and Finland). The pilot project aims to validate the process for Germany,” the official announcement states.
“Due to the flexible load, Bitcoin miners could play an important role in balancing supply and demand in the energy grid in the future,” the companies added in their joint announcement. “Surplus energy is converted into digital values through the miners. We call this digital monetary photosynthesis,” said Oliver Nyderle, Head of Digital Trust & Web3 Infrastructure at Deutsche Telekom MMS.
The hosting of the Bitcoin miners is managed by Metis Solutions GmbH from Dresden. The mining containers are situated on the premises of Riva GmbH Engineering in Backnang, a manufacturer of metal and glass facades that operates its own photovoltaic system. This setup allows the project to leverage on-site renewable energy for mining operations.
Deutsche Telekom MMS, leveraging years of experience with Web3 infrastructure, oversees the operation of the mining devices. Bankhaus Metzler contributes by defining test runs and analyzing data evaluations, exploring further possibilities of financial services with Bitcoin through the pilot.
Bankhaus Metzler, a private bank established in 1674, has shown increasing interest in blockchain technology. “Our goal is to gain experience in various application areas to further advance the innovative power of blockchain technology in Germany,” said Hendrik König, Head of Digital Assets Office at Bankhaus Metzler. “Blockchain technology is gaining increasing importance in operational business outside the financial industry—and a trusted financial partner is indispensable for managing crypto assets.”
The pilot aims to provide valid field data and insights to plan subsequent projects, potentially offering solutions to stabilize the energy grid during fluctuations that stress the system. This approach could benefit renewable energy producers who face challenges with unpredictable regulating power.
Notably, Deutsche Telekom has been engaged in the crypto ecosystem since 2020. Deutsche Telekom MMS has been providing infrastructure for various decentralized protocols in the Web3 sector, including Chainlink, Fetch.ai, and Polygon. In 2023, Deutsche Telekom expanded its portfolio by operating a Bitcoin node.
At press time, BTC traded at $69,250.
Featured image created with DALL.E, chart from TradingView.com
