German telecom giant Deutsche Telekom has partnered with Germany’s oldest bank, Bankhaus Metzler, to launch a pilot project testing Bitcoin mining infrastructure powered by surplus renewable energy. The initiative aims to utilize excess electricity from renewable sources that would otherwise remain unused due to grid limitations or insufficient storage options.
Per the announcement on Monday, Nov. 4, increasing renewable energy production presents challenges in stabilizing the energy grid, as irregular production peaks occur depending on weather conditions. Deutsche Telekom understands that Bitcoin mining could be crucial in balancing supply and demand within the grid. This method has already been successful in countries like the United States and Finland, and the pilot project seeks to validate its effectiveness in Germany.
The mining operations are hosted by Metis Solutions GmbH and located at Riva GmbH Engineering’s facilities in Backnang, Germany. Riva Engineering, a manufacturer of metal and glass facades, generates its own electricity through a photovoltaic system. Telekom MMS is responsible for operating the mining devices, while Bankhaus Metzler is involved in defining test runs and analyzing data, exploring further possibilities for financial services with digital assets.
Oliver Nyderle, Head of Digital Trust & Web3 Infrastructure at Deutsche Telekom MMS, stated that the project is a step toward testing the regulatory effect of Bitcoin miners on the energy grid. He said,
“Surplus energy is converted into digital values through the miners. We call this digital monetary photosynthesis.”
Hendrik König, Head of the Digital Assets Office at Bankhaus Metzler, emphasized gaining experience in blockchain technology applications. “Our goal is to further advance the innovative power of blockchain technology in Germany,” he noted. The bank established its Digital Assets Office in 2022 to focus exclusively on blockchain technology and the digital assets ecosystem.
Telekom MMS has been providing infrastructure for various decentralized protocols in the Web3 sector, including networks like Chainlink, Fetch.ai, and Polygon. In 2023, Telekom expanded its portfolio by operating a Bitcoin node, marking its first involvement with a proof-of-work network.
The pilot project aims to gather field data and insights to plan subsequent initiatives, potentially contributing to stabilizing the energy grid during fluctuations. Wind power producers and…
Click Here to Read the Full Original Article at Cryptocurrency Mining News | CryptoSlate…