- Japan's largest electricity company uses green energy to mine cryptocurrency
- The aim is to prevent wasted renewable energy and promote Bitcoin mining
- Bitcoin mining industry interconnects with renewable energy
Japan's largest electricity company uses green energy to mine cryptocurrency
The new trend in the world is loving your planet, taking care of the environment, and being sustainable. Sustainability is present in our grocery stores, workplaces, and even homes. Many of us decide to get an electric car, use solar power to heat or water our homes or rely on other renewable resources.
Our world looks different in many ways because some people rely on technology and make their homes "green" or "smart," and these are all new things that not everyone can understand. However, our lives get increasingly different each year on other cryptocurrency-related ways.
People can generate energy by putting solar panels on their roofs and pay for things using digital assets—cryptocurrency. Some of these industries also intertwine. Japanese power giant Tepco is now exploring this "green" Bitcoin mining approach[1].
A subsidiary of Tokyo Electric Power Company (Tepco) is exploring Bitcoin mining to use surplus renewable energy that would otherwise go to waste. Agile Energy X, the Tepco subsidiary, is testing a project that uses excess solar energy to power Bitcoin mining machines. According to Kenji Tateiwa, president of Agile Energy X, if successful, this initiative could lead to more widespread adoption of green energy.
The aim is to prevent wasted renewable energy and promote Bitcoin mining
The concept is based on Japan's "output control" practice, where renewable energy production is sometimes intentionally reduced to balance supply and demand or due to transmission limits. Agile Energy X has already set up mining machines near solar farms in Gunma and Tochigi, just outside of Tokyo, to use this extra energy.
In 2023, Japan saw 1,920 gigawatt-hours of power go unused due to output control—enough to power around 450,000 households annually. Simulations by Agile Energy X suggest that if renewable energy made up 50% of Japan's power supply, up to 240,000 gigawatt-hours could be wasted annually[2].
By using just 10% of this excess energy for Bitcoin mining, the company estimates it could generate around 360 billion yen ($2.5 billion) in Bitcoin each year. Tateiwa believes that if Bitcoin mining proves profitable, it could encourage more companies to invest in green energy.
Fred Thiel, CEO of Marathon Digital Holdings, commented on the report, saying that U.S. utilities should take note. Daniel Batten, a researcher focused on environmental and social issues, also praised Japan’s approach to exploring Bitcoin's potential. This might be a huge step and introduction to a new approach other firms could adopt.
Bitcoin mining industry interconnects with renewable energy
Such an initiative is not new and is coming out of nowhere. Cryptocurrency mining requires a lot of energy to power these computers that verify crypto transactions. This energy can be related to burning fuel and causing carbon emissions. This drives climate change and air purity issues.
Many firms in the United States use this method, especially Texas, where such renewable energy is explored. More and more companies and countries rely on methods that can help turn waste and surplus energy into money.
Japan may not be the first to adopt this approach, but initiatives like these could propel the use of renewable energy in crypto mining much further. For instance, TeraWulf, a crypto mining company, is already using over 90% zero-carbon energy sources—such as nuclear, hydroelectric, and solar power—and aims to achieve 100% zero-carbon emissions by 2030.
Green or sustainable Bitcoin mining focuses on minimizing the environmental impact of energy usage. Some mining companies claim their operations are "zero carbon" or "carbon neutral," but these terms have different meanings. "Zero carbon" implies no carbon emissions were released during production, while "carbon neutral" means that any carbon released was offset by efforts to remove an equivalent amount from the atmosphere, often through initiatives like carbon credits or tree planting[3].
However, there are concerns about the long-term effectiveness of carbon-neutral strategies, as they may not always lead to permanent reductions. This evolving approach to crypto mining demonstrates the industry's potential to become more environmentally friendly, positioning sustainable energy as the sector's future.
