The first solar-powered Bitcoin mining facility opens in South Australia
A solar-powered Bitcoin (BTC) mining facility has begun operations in South Australia to become the first of its kind in the region.
The facility operated by Lumos Digital Mining provides approximately five megawatts of electricity to the activity in an effort to mitigate Bitcoin’s carbon footprint, ABC News Australia reported on September 16.
Angelo Kondylas, an official from Lumos Digital Mining, stated that the center has the potential to mine at least 100 Bitcoins in a year, but the amount depends on the availability of electricity.
He noted that the company can at some point draw power from the central grid if there is a need to increase production. The company, located in the industrial city of Whyalla, also plans to mentor other entities interested in harnessing solar energy to get involved in Bitcoin mining.
“Energy generators can]spend $10 million because they have to shut down that day because there is too much on the system. We are basically like a sponge; we soak up the surplus that is not used, Kondylas said.
Decarbonize the blockchain
Elsewhere, Nick Champion, Minister of State for Trade and Investment, noted that harnessing solar energy would help decarbonise the blockchain amid increased demand.
In particular, Bitcoin mining has come under fire for the asset’s energy consumption at a time when various jurisdictions are working to combat climate change.
In response to the setback, several mining operators are harnessing renewable energy sources to mine the asset. For example, Aspen Creek Digital also launched solar-powered Bitcoin mining in the western part of Colorado.
Fight climate change
In this line, the White House recently warned that the production of cryptocurrencies could derail efforts to combat climate change. A report from the White House indicated that steps must be taken to address the problem, although no proposed rules were shared.
“Depending on the energy intensity of the technology used, cryptoassets could impede broader efforts to achieve net-zero carbon pollution consistent with US climate commitments and goals,” a White House official stated.
The latest concerns about Bitcoin power consumption are part of President Joe Biden’s Executive Order that directed federal agencies to study the development of cryptocurrencies.
Accordingly, on September 16, the White House released its first crypto framework lobbying for more control and other laws on cryptocurrencies.
