Coinspeaker Deutsche Telekom and Bankhaus Metzler Launch Pilot Project to Convert Surplus Renewable Energy into Bitcoin Mining
A subsidiary of Deutsche Telekom, MMS, in collaboration with Bankhaus Metzler, is launching a pilot project to operate a Bitcoin mining initiative using surplus energy. According to the press release, this initiative is expected to be powered by electricity from renewable energy sources that would otherwise go unused due to the grid’s current limitations.
The pilot project is hosted at Riva GmbH Engineering in Backnang, where the mining operation is powered by the company’s photovoltaic system, making it a direct link between renewable energy production and digital asset creation.
Metis Solutions GmbH oversees the mining infrastructure, while Telekom MMS brings its expertise in web3 technology to handle operational details. Bankhaus Metzler, a historic financial institution in Germany, takes the lead on the financial side, exploring how blockchain technology could integrate with traditional financial services.
The rise in electricity production from renewable energy sources has created a need for effective power regulation. When production peaks, the amount of electricity generated can exceed immediate demand, leading to an excess that risks overloading the power grid. Therefore, managing this surplus is crucial for maintaining grid stability. Countries like the United States and Finland have explored similar methods to stabilize their grids.
Harnessing Blockchain for Financial Innovation
Oliver Nyderle, Head of Digital Trust and Web3 Infrastructure at Deutsche Telekom MMS, describes the process as “digital monetary photosynthesis, where surplus renewable energy is transformed into digital value via miners. He said:
“For this, we need mechanisms that can respond quickly to changes and absorb fluctuations. 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.”
Hendrik König, Head of the Digital Assets Office at Bankhaus Metzler, emphasizes the broader potential of the project for Germany’s energy and financial sectors. He mentioned that the goal is to explore new ways to use blockchain technology in Germany.
Therefore, Bankhaus Metzler is glad to be part of the pilot project with Telekom MMS. He further stated that blockchain is gaining increasing importance outside the financial industry and that having a reliable financial partner is crucial for managing crypto assets.
It was revealed that the future goal is to use insights from this pilot project to help stabilize the grid during energy fluctuations. This technology could also support wind producers, who often struggle with unpredictable energy availability.
“The long-term goal is to use the data obtained from the pilot project to contribute to the stabilization of the energy grid during energy fluctuations that stress the grid. Additionally, wind power producers or photovoltaic plant operators could benefit from this technology, as they often face the challenge of unpredictable regulating power,” Deutsche Telekom stated.
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Deutsche Telekom and Bankhaus Metzler Launch Pilot Project to Convert Surplus Renewable Energy into Bitcoin Mining
