Deutsche Telekom began exploring options to use surplus renewable energy to power Bitcoin mining, a move it stated would bring Germany in line with the US and Finland, along with helping to regulate the electricity sector.

The operator’s T-Systems Multimedia Solutions (MMS) subsidiary will pilot a Bitcoin mining project with private bank Bankhaus Metzler to gather relevant data and insights into how leftover renewable energy could be employed in the crypto-currency process.

Deutsche Telekom explained the peaks and troughs of weather-dependent renewable energy is creating a need to balance grids, with a particular eye on surpluses in the solar and wind sectors. It noted the US and Finland are particularly advanced in using such techniques, adding the “flexible load” of the Bitcoin mining segment lends itself well to the power-project’s goals.

The target is to employ the data created in the pilot to help stabilise power grids, which Deutsche Telekom predicted could benefit wind- and solar-power generating companies.

Deep dive
Deutsche Telekom lined up Metis Solutions to manage the Bitcoin mining project, the containers for which are located in a solar-powered site operated by façade-maker Riva Engineering.

Oliver Nyderle, head of Digital Trust and Web3 Infrastructure at T-Systems MMS, explained excess energy “is converted into digital values through the miners”.

“We call this digital monetary photosynthesis.”

T-Systems MMS is managing the devices used and Bankhaus Metzler eyeing the opportunities for broader financial services offered by digital assets.

The bank established a digital assets unit in 2022, focussed solely on blockchain technology. Deutsche Telekom noted it has operated a Bitcoin node as part of a broader Web3 strategy since 2023 which the energy trial expands.

Bankhaus Metzler digital assets head Hendrik Konig said Blockchain technology “is gaining increasing importance in operational business outside the financial industry” and argued the case for working with trustworthy partners on such schemes.