Deutsche Telekom, Bankhaus Metzler Test Bitcoin Mining Infrastructure from Renewable Energy

Deutsche Telekom subsidiary MMS, in collaboration with Bankhaus Metzler, is launching a pilot project to operate a Bitcoin mining infrastructure using surplus energy. The mining is intended to be powered by electricity from renewable energy sources, which would otherwise remain unused due to insufficient grid input possibilities and/or lack of storage options. The pilot project aims to provide valid field data and insights to plan subsequent projects.

With the increasing production of electricity from renewable energy sources, the need to stabilize the energy grid (regulating power) also rises, as production peaks occur irregularly depending on the weather. Particularly through photovoltaic and wind power, there is an increasing amount of surplus energy. This regulating power 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.

Due to the flexible load, Bitcoin miners could play an important role in balancing supply and demand in the energy grid in the future. 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.

The hosting of the Bitcoin miners for the pilot project is managed by Metis Solutions GmbH from Dresden. The mining containers are located on the premises of Riva GmbH Engineering, a manufacturer of metal and glass facades, in Backnang. The company has its own electricity production from a photovoltaic system. Telekom MMS, thanks to years of experience with web3 infrastructure, takes care of the operation of the devices. Together with Bankhaus Metzler, test runs and data evaluations are defined and analyzed. Bankhaus Metzler explores further possibilities of financial services with digital assets through the pilot project.

Oliver Nyderle, Head, Digital Trust & Web3 Infrastructure, Deutsche Telekom MMS

With the growing number of renewable energy sources and the resulting fluctuations in available energy, the need for quickly available regulating power increases. 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, Digital Assets Office, Bankhaus Metzler

Our goal is to gain experience in various application areas to further advance the innovative power of blockchain technology in Germany. Therefore, we are very pleased to be part of this pilot project with Telekom MMS. Blockchain technology is gaining increasing importance in operational business outside the financial industry – and a trusted financial partner is indispensable for managing crypto assets.

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