Bitcoin mining brings more than money to this East African country

January 25, 2023 Coin Telegraph

Africa

A Bitcoin mining project in a remote corner of Malawi, a landlocked country in southeastern Africa, connects more families to the grid while delivering economic empowerment to an impoverished region.

A Bitcoin (BTC) mining project that taps into clean, stranded and excess hydro energy in Malawi has picked up steam. The company behind the project, Gridless, shared that there are now “1600 families connected to this remote hydro mini-grid in the mountains of southern Malawi.”

1600 families connected to this remote hydro minigrid in the mountains of southern Malawi. They have 50kW of stranded energy that we are testing out as a new Bitcoin mining site.

Videos for context.

Still working on venting, wiring, etc. pic.twitter.com/Sxf8ABGPWH
— Gridless (@GridlessCompute) January 21, 2023

The project exploits 50 Kilowatt (kW) of stranded energy to test out as a new Bitcoin mining site. Erik Hersman, CEO and co-founder of Gridless, told Cointelegraph that while it’s a brand new mining project, the “Impact was immediately felt.”

“The power developer had built these powerhouses a few years ago, but they weren’t able to expand to more families because they’re barely profitable and couldn’t afford to buy more meters to connect more families. So our deal allowed for them to immediately buy 200 more meters to connect more families.”

Bitcoin miners are flexible but energy-hungry clients. They are a plug in and play solution for sources of excess energy around the world. In Malawi, the miners run off environmentally-friendly hydropower.

*The facility runs off hydropower. Source: Hersman*

In Hersman's words:

“The environmental footprint is quite light as it is run off a river. And the Bitcoin mining didn’t change any of that.”

It’s Gridless’ second project in Sub-Saharan African to date. Late last year, a mining project in Kenya connected a remote community using excess hydropower.

*Street sellers in Malawi. Source: Hersman*

The environment aside, the Bitcoin mine brings economic empowerment and job opportunities to Malawi. Hersman explained that electricity load shedding is common in Malawi, but the 1600 families using the hydropower source do not have any power issues:

“It’s always amazing to me to see how useful and valuable mini-grids are to the community. It [Bitcoin mining] immediately changes the education, healthcare, business, logistics, and wealth of the community where they go in.”

Obi Nwosu, CEO of Fedimint and a Board Adviser at Gridless also shed light on the story, explaining that the project in "Malawi is one more in a line of what I expect to be many examples over the coming years."

“As usual, these are modest people rolling up their sleeves and helping talented, local engineers do what they do best. The project brings power as well as financial and economic freedom to many.”

Bitcoin miners tapping into stranded energy while empowering local communities is a growing trend in 2023. From El Salvador’s promise of geothermal Bitcoin mining to balancing the grid load and sustaining jobs for local communities in Canada– there is a “Torrent of opportunities coming their way,” Nwosu explains.

Michael Saylor has described Bitcoin mining as “the ideal high-tech industry to put in a nation that has plenty of clean energy but isn’t able to export a product or produce a service with that energy.” It’s an accurate summation of the project in Malawi.

Canal channeling water in Malawi. Source: Hersman

Ultimately, this type of Bitcoin mining projects is more akin to a partnership. Hersman sums it up: “We work with the power producer, and they work to keep the power price affordable and all of their employees are from the community too, providing jobs for everything from security to linesmen to operations.”

Georgia punches well above its weight for Bitcoin mining: Report

February 21, 2022 Coin Telegraph

Bitcoin mining

The tiny population of Georgia is a dark horse for Bitcoin mining, contributing close to 1% of the industry’s total hash rate, according to a report by Arcane research.

At first glance, the pint-sized Republic of Georgia is an unlikely suspect for Bitcoin (BTC) mining activity. An underdog for mining, the country boasts abundant hydropower while ranked seventh worldwide for the World Bank’s ease-of-doing-business index — ahead of the United Kingdom and Germany.

Nestled on the Black Sea at the intersection of Europe and Asia, Georgia hosts Bitfury’s industrial mining operations as well as smaller, solo miners that tap into enormous amounts of hydroelectric power.

*Dutch miner Bitfury's Bitcoin mining operation at the foot of the Tblisi National Park. Source: NPR*

The country packs a punch for Bitcoin mining. While the Cambridge Bitcoin Electricity Consumption Index puts Georgia’s hash rate at 0.18%, a detailed and long-term report by Arcane Research suggests the number is closer to 0.71%.

Jaran Mellerud, an analyst at Arcane Research and author of the report, told Cointelegraph:

“Home mining is big in Georgia, especially in regions with subsidized electricity. As long as there are electricity subsidies in certain regions of the country, people will continue setting up small home mining operations.”

The report identifies at least 125 megawatts of crypto mining capacity, 62 MW of which derives from industrial-scale data centers. “The remaining 63 MW should then come from lots of small amateur setups scattered around the country in homes, garages, abandoned warehouses and factories.”

Mellerud concludes that the real number for Georgia’s total hash rate is in the region of 0.71% because “100 MW of Georgia’s 125 MW total crypto mining capacity is dedicated to Bitcoin and that Georgia’s hardware is as efficient as the network average.” It is multiples higher than CBECI’s 0.18% estimate, he added.

However, while the trend of Bitcoin miners moving to untapped energy resources, cheap energy, or merely cost-efficient places to do business is not new, it is a double-edged sword.

In nearby Kazakhstan, which recently hosted as much as 18% of the global hash rate due to cheap power and loose rules, regulators are already considering stepping in, proposing power price hikes and taxes.

Mellerud is aware that despite Georgia’s “business friendliness,” “rising electricity prices” could deter miners from setting up operations. He told Cointelegraph:

“I don’t believe the Georgian government wants more mining operations in the country, as miners are already using almost 10% of the country’s electricity, contributing to the country’s growing electricity deficit.”

*Bitcoin and the flag of Georgia. Source: Georgiawealth.info*

Nonetheless, in a boon for BTC miners in Georgia, lawmakers might grant crypto miners tax exemptions in a new bill, while Mellerud assured that “for industrial-scale mining, I believe there is no room for more capacity.”

Instead, home mining–miners with units under 1 MW may continue to flourish. Despite calls that residents of Svaneti in Georgia must swear a holy oath to Saint George to stop crypto mining, the country, on the whole, has a “positive attitude towards the emerging asset class.”

Small-time crypto enthusiasts can continue to use Bitcoin mining waste heat to warm their homes in the mountains, using Georgia’s abundance of “cheap and clean hydroelectric power.”

Bitmain signs 500MW joint venture with sustainable BTC miner Merkle Standard

February 11, 2022 Coin Telegraph

Antminer

Sustainable Bitcoin mining gets a boost from the joint venture between mostly hydro-powered BTC miners Merkle Standard and infrastructure provider Bitmain.

Beijing-based Bitmain has partnered with a United States-based sustainable Bitcoin miner, Merkle Standard, which will contribute capital investment, expertise and parts.

As part of the joint venture, Bitmain will contribute to the development of up to 500 MW of clean digital mining infrastructure at Merkle Standard's hydro-powered facilities in Eastern Washington.

Bitmain is a household name in the Bitcoin (BTC) ecosystem, famed for the Antminer brand, the name behind popular Bitcoin ASIC miners the S9 and S19. Merkle Standard claims to be a carbon-conscious BTC miner, keen to become net carbon negative by year-end. Merkle Standard will install up to 150,000 Bitmain mining machines thanks to the venture.

Ruslan Zinurov, CEO of Merkle Standard, told Cointelegraph that the partnership with Bitmain will “catapult our growth plan of building one of North America’s largest sustainable digital asset mining platforms.”

In a further commentary, Josh Zappala, chief strategy officer at Merkle Standard, underlined the benefits BTC mining brings to the social fabric of local communities. With aspirations to become one of the area’s largest employers, the joint venture will introduce “35–50 full-time jobs to the site,” while “supporting local business.” He told Cointelegraph:

“Due to the flexible characteristics of the data center’s power load, we are suited to be the ideal power consumer for our power providers and look forward to providing additional support to the community.”

No strangers to scrutiny, Merkle Standard’s move reflects the trend of BTC miners worldwide upping their ESG credentials. The Bitcoin Mining Council boasted a sustainable energy mix of 58.5% in the fourth quarter of 2021, while miners in Norway are even using waste heat to dry out lumber.

According to the press release, data center development has entered the first phase of production at the Merkle Standard mothership in Eastern Washington. The 225MW site will expand to 500MW by the second quarter of 2022.

The new equipment, including Bitmain’s S19J Pro, S19 XP, and S19+ hydro miners will come online in Eastern Washington, although Merkle Standard nods towards “various expansion locations” in 2022. Ultimately, the joint venture is one part of CEO Zinurov’s vision to “achieve industry-leading power efficiency.”

Sustainable Bitcoin miner uses waste heat to dry wood

February 11, 2022 Coin Telegraph

Bitcoin mining

Not only does one Norwegian Bitcoin miner boast 99% renewable energy stats but it’s even using waste heat to dry out timber and soon seaweed.

Norway is a bastion for renewable energy management in Europe. As much as 99% of Norway’s energy derives from hydropower while the grid often enjoys a green energy surplus.

But for Norway’s largest data center and Bitcoin (BTC) miner, Kryptovault, using regenerative hydropower to attempt to solve valid Bitcoin blocks was not enough.

At the Hønefoss Bitcoin mining operation, which employees have aptly named “the Cathedral” due to its vast and cavernous expanse, the hot air generated by Bitcoin mining rigs is recycled and used to dry out chopped logs.

Kjetil Hove Pettersen, CEO of Kryptovault, told Cointelegraph that Norway is an “ideal location for mining” and that alongside the log-drying operation, seaweed drying operations will kick off in the first half of 2022.

According to Pettersen, Norway has a lot of "trapped" energy, pointing out to a much higher production compared to consumption as well as a limited capacity to transfer the excess energy:

“This translates to very low energy prices and we can ‘rescue’ that trapped energy rather than letting it go to waste.”

It would appear that the withdrawal of electricity subsidies from Bitcoin mining farms in 2018 has not affected the Scandinavian country’s status as a sought-after destination to mine cryptocurrency.

The Guardian newspaper, which typically asserts Bitcoin mining energy-FUD, flipped the narrative while reporting on Kryptovault’s operation. Their article considered “can Bitcoin be sustainable?”

Svein Bjerke, General Manager at the timber company that receives the dry logs, answers that question. In a video, Bjerke says that drying wood with waste heat from Bitcoin mining is the “most environmentally friendly way to do this.”

Moreover, the secondary benefits of Bitcoin mining branch out to more than the environment. Over time, Hønefoss grid customers are actually better off due to the presence of Kryptovault’s energy-hungry process.

Grid fees–like trees–are hacked down year after year because the local area’s total energy consumption increases. The more energy is used, the more prices come down over the long term. The company estimates that circa 2 million Euros is saved due to “Kryptovault’s existence in our grid.”

Nonetheless, the route to mining 100% green and renewable Bitcoin has not been easy. Numerous challenges face miners in Norway, including:

“Project and engineering perspectives to financial challenges, involving banks, tax and regulatory compliance. Just the step of setting up a bank account when working in this industry can be a large challenge today.”

Unphased, these hiccoughs are unlikely to hinder Kryptovault’s vision to transform clean energy into Satoshis. Pettersen says he “can’t think of any better industrial use-cases than what we are doing.”

When asked by Cointelegraph if Kryptovault would consider mining other cryptocurrencies in the future, Pettersen jokes, “for us, Bitcoin is the name of the game.”

Hydrominer