Deutsche Telekom, Europe’s largest telecom provider, has entered the Bitcoin mining industry with an eco-conscious project leveraging surplus renewable energy.
Named “Digital Monetary Photosynthesis,” the project aims to test how to utilize the surplus of Germany’s expanding yet unpredictable renewable energy resources, such as wind power, to power bitcoin mining operations.
The project is a collaboration between Deutsche Telekom’s subsidiary MMS and the German bank Bankhaus Metzler. The mining facility will be located in Backnang, Germany, at Riva Engineering’s facility and will be managed by Metis Solutions.
Head of Digital Trust and Web3 Infrastructure at Deutsche Telekom MMS, Oliver Nyderle, explained the rationale: by directing surplus energy into Bitcoin mining, they can reduce energy fluctuations in the power grid, adding stability to Germany’s renewable energy supply.
Nyderle likened this process to “digital monetary photosynthesis,” where Bitcoin miners convert unused energy into digital assets, adding economic value from surplus resources.
In addition to stabilizing the power grid, Deutsche Telekom’s collaboration with Bankhaus Metzler wil also explore the financial applications of digital assets, according to the press release.
While specific future initiatives remain undisclosed, the partnership indicates a growing interest in integrating Bitcoin mining with traditional financial and infrastructure systems in Germany and globally.
This project mirrors global efforts to utilize Bitcoin mining for sustainable purposes. For instance, in Finland, Marathon Digital Holdings operates a two-megawatt Bitcoin mining project that channels excess heat from mining rigs to a district heating system, warming a town of over 11,000 residents.
Earlier in the year, online payments giant PayPal proposed a new system to incentivize Bitcoin miners to adopt low-carbon energy sources. The proposed system, developed in partnership with Energy Web and DMG Blockchain Solutions, suggested that miners should be certified and rewarded based on their clean energy and grid impact scores. The rewards included offering lower fees and an additional locked BTC reward in a multisig payout address accessible only to them.
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