Deutsche Telekom to start Bitcoin mining project with surplus energy
Deutsche Telekom has announced plans to enter the Bitcoin mining industry. In partnership with Bankhaus Metzler, the Deutsche Telekom subsidiary MMS is starting a pilot project to run a Bitcoin mining infrastructure on surplus energy from renewable sources. The mining project is called Digital Monetary Photosynthesis.
Deutsche Telekom new Bitcoin mining project using surplus energy
Dresden-based Metis Solutions GmbH is in charge of hosting the Bitcoin miners for the pilot project. The mining containers are situated on the grounds of Riva GmbH Engineering, a Backnang-based company that makes glass and metal facades.
Bitcoin mining project prompted by increase in renewable energy sources
Due to a lack of storage options and/or limited grid input possibilities, the electricity from renewable energy sources that would otherwise go unused is supposed to power the mining. In order to plan future projects, the pilot project seeks to supply reliable field data and insights.
Oliver Nyderle, Head of Digital Trust and Web3 Infrastructure at Deutsche Telekom MMS, stated in the announcement on November 4th that “Together with Bankhaus Metzler and RIVA Engineering GmbH, we are taking a step in this direction to test the regulatory effect of Bitcoin miners in the energy grid. Surplus energy is converted into digital values through the miners. We call this digital monetary photosynthesis.”
The need for rapidly available regulating power rises as the number of renewable energy sources increases and the resulting variations in available energy occur. We require systems that can absorb fluctuations and react swiftly to changes in order to accomplish this, Nyderle added.
Other countries, such as the USA and Finland, have already effectively implemented the regulating power through Bitcoin mining. Validating the procedure for Germany is the goal of the pilot project.
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.
Deutsche Telekom expanding blockchain presence
Deutsche Telekom's growing interest in blockchain and decentralized technologies is demonstrated by the pilot project. Since 2020, MMS, the telecom company's web3 infrastructure division, has backed decentralized networks like Chainlink, Fetch.ai, and Polygon. A major turning point in MMS's blockchain journey was reached in 2023 when it launched a Bitcoin node, expanding into proof-of-work ecosystems.
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