Deutsche Telekom arm partners with Germany’s oldest bank for renewable Bitcoin mining trial

Deutsche Telekom’s MMS and Bankhaus Metzler are piloting Bitcoin mining to tap into excess renewable energy and stabilize Germany’s grid.

Deutsche Telekom subsidiary MMS and Bankhaus Metzler, Germany’s second-oldest bank, have launched a pilot project to explore the use of excess renewable energy for Bitcoin (BTC) mining, aiming to collect field data that could help stabilize Germany’s energy grid.

Deutsche Telekom said in a press release on Monday, November 4 that the project will be powered by electricity from “renewable energy sources that will 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.”

German Telecom

The press release states that the mining infrastructure hosted by Metis Solutions is located at Riva GmbH Engineering in Backnang, where photovoltaic systems power the miners. MMS will oversee operations, while Bankhaus Metzler will evaluate financial applications for cryptocurrencies.

Bitcoin mining as solution to offset renewable energy surplus

The initiative aims to address challenges arising from increased renewable energy production; This often causes a glut if supply exceeds grid demand. Deutsche Telekom stated that Bitcoin miners could play “an important role in balancing supply and demand in the energy grid in the future.”

Oliver Nyderle, head of digital trust and web3 infrastructure at Deutsche Telekom MMS, says the need for quickly available regulatory power is increasing due to “the increasing number of renewable energy sources and the resulting fluctuations in available energy”.

Hendrik König, head of Bankhaus Metzler’s digital assets office, said the ultimate goal is to “gain experience” in various application areas to “further advance the innovative power of blockchain technology in Germany”, adding that blockchain technology is “increasingly important in the world”. “An operational business outside the financial sector and a reliable financial partner are indispensable for managing crypto assets.”