German Telecom Giants Telekom MMS & Bankhaus Metzler Join Hands for Bitcoin Mining Project
Key Takeaways
- Deutsche Telekom’s subsidiary, MMS, and Bankhaus Metzler, have decided to collaborate on a new Bitcoin mining project that will use surplus green energy.
- Similar projects have already been tried and tested in the US and Finland, and they’re quite successful. These companies are trying to do the same for Germany.
- The first plant has already been set up at the campus of metal construction company Riva. Based on the success of this project, subsequent projects will be planned.
Deutsche Telekom subsidiary, Telekom MMS, has joined hands with Bankhaus Metzler for a Bitcoin mining project using surplus green energy.
According to the companies, a lot of renewable energy goes to waste during the peak production periods due to inadequate storage and delivery options. So, instead of wasting it, they have decided to use it for a “digital monetary photosynthesis” project.
Similar projects are already being successfully practised in the USA and Finland, and these companies trying to bring the same to Germany.
A setup has already been established at the campus of metal construction company Riva in Backnang, Baden-Württemberg. Containers of mining hardware have already arrived at the scene and the electricity will be supplied from Riva’s own solar systems.
It’s also worth noting that based on the results of this project, other projects will be planned.
Bitcoin Mining Can Protect the Energy Grid from Excess Load
Energy wastage isn’t the only problem. Production peaks in renewable energy sources often fluctuate, depending on the weather, especially when it comes to wind and photovoltaic sources.
This could impose unnecessary stress on the grid. However, if every time an increase in energy is used up in Bitcoin mining, the grid will be stabilized regardless of the changes in energy production.
What Is Bitcoin Mining?
Bitcoin mining is the process of verifying and introducing new Bitcoins to the blockchain. In simple terms, it’s the process of minting new Bitcoins. It’s worth noting that Bitcoin is currently $72,630.
The process has been previously criticized for being too energy-intensive and heavily contributing to increased carbon emissions.
For example, according to the International Energy Agency’s (IEA) Electricity 2024 report, Bitcoin mining consumed 110 terawatt-hours (TWh) of electricity in 2022 alone, which is 0.4% of the global annual demand.
Even worse, earlier, it mostly used energy generated from fossil fuels, further adding to the harmful emissions. However, now that the process is actually stabilizing a power grid and only using excess renewable energy, the criticism might subside.
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Krishi is an eager Tech Journalist and content writer for both B2B and B2C, with a focus on making the process of purchasing software easier for businesses and enhancing their online presence and SEO.
Krishi has a special skill set in writing about technology news, creating educational content on customer relationship management (CRM) software, and recommending project management tools that can help small businesses increase their revenue.
Alongside his writing and blogging work, Krishi’s other hobbies include studying the financial markets and cricket.
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