Deutsche Telekom (DT), Europe’s largest telecommunications provider by revenue, is launching a pilot project to test Bitcoin mining using surplus renewable energy.
DT announced in a blog post on Monday that its subsidiary, MMS, has initiated Bitcoin mining in collaboration with private bank Bankhaus Metzler, aiming to balance energy grids and utilize excess renewable energy.
The project, named Digital Monetary Photosynthesis, seeks to validate the potential of Bitcoin mining infrastructure powered by renewable energy that might otherwise remain unused due to grid limitations or a lack of storage options. “This regulation 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,” wrote DT in the blog post.
While DT did not specify the project’s scale, it noted that the mining equipment is hosted by Dresden-based Metis Solutions GmbH at the premises of Riva GmbH Engineering, a Backnang-based manufacturer with its own solar energy system. Deutsche Telekom MMS will manage the mining operations, while Bankhaus Metzler will analyze data and explore further financial services involving digital assets.
According to the telecommunications giant, as Germany increases its renewable energy production, there is a growing need to stabilize the grid amidst fluctuating power levels caused by varying weather conditions. This surplus energy issue is particularly common in wind and solar power, which often produce excess power when demand is low.
“With the increasing number of renewable energy sources, the need for readily available regulating power also increases. We are testing the regulatory effect of Bitcoin miners in the energy grid, converting surplus energy into digital value—a process we call ‘digital monetary photosynthesis,'” said Oliver Nyderle, Head of Digital Trust & Web3 Infrastructure at Telekom MMS.
The announcement follows months of speculation after executives from DT MMS first hinted at the firm’s expansion into Bitcoin mining at the BTC Prague conference.
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