Solar-powered Bitcoin mining center opens in industrial town of Whyalla
The steel town of Whyalla has flipped the switch on South Australia’s first solar-powered Bitcoin mining centre.
Important points:
- A new 5 megawatt data mining center has been unveiled at Whyalla
- The center generates bitcoins and its processing power can be resold
- The center is the first solar-powered digital mining center in South Australia
Operated by Lumos Digital Mining, the 5-megawatt data center will be used to mine bitcoins, a type of energy-intensive cryptocurrency that requires computers to solve complex math problems for financial rewards.
Bitcoin is the world’s largest cryptocurrency. At a time when the world is desperately trying to reduce energy consumption, Bitcoin uses more energy each year than mid-sized nations like Argentina.
Minister of State for Trade and Investment Nick Champion said the fact that the plant could run on solar energy showed that bitcoin generation could be more environmentally friendly.
“This is important for decarbonizing the blockchain, which is a very energy-intensive industry,” he said.
“I think it’s the beginning of a new economy out here at Whyalla.”
Energy-intensive mining
A recent report from the White House on Science and Technology Policy showed that US crypto production alone represented as much as 0.3 percent of global greenhouse gas emissions.
Mr Champion said he hoped to see more facilities mining cryptocurrency using renewable energy.
“There will be demand for blockchain, but also carbon neutral blockchain, so I think we will see more and more facilities like this,” he said.
Lumos Digital Mining’s Angelo Kondylas said the facility could produce around 100 bitcoins a year, depending on power availability.
However, Kondylas also said the company could potentially sell generated power to others who wanted to take advantage of blockchain technology.
While the site was primarily solar-powered, Kondylas said it could increase output to draw more power from the grid on days when electricity production was high.
“[Energy generators may be] spend $10 million because they have to shut down that day because there’s too much on the system,” he said.
“We are basically like a sponge; we soak up the surplus that is not used.”
Lumos Digital Mining has said it plans to eventually double the size of the facility.
