According to a media report, the crypto mining data center will run mainly on solar-generated electricity in South Australia. The region is known for its high-energy steel production and iron ore extraction.
A new crypto mining facility that runs on solar energy has been installed in the ‘Steel City” of Whyalla, South Australia. The 5-megawatt facility, which will be operated by Lumos Digital Mining, will be producing bitcoin. This process is often blamed for being energy-intensive.
Bitcoin mining firm operated by Lumos Digital Mining users solar energy
The Australian national broadcaster ABC reports that the extraction of cryptocurrency market capitalization’s leading cryptocurrency uses more power than countries such as Argentina, at a time in which the world is trying reduce its energy consumption. This criticism is often repeated by mass media across the globe.
Local authorities view the solar-powered crypto mining project as proof that bitcoin generation is more sustainable. Nick Champion, South Australia’s State Minister for Trade and Investment, commented on the undertaking.
This is crucial for decarbonizing the blockchain industry, which is very energy-intensive. It’s my opinion that it’s the beginning a new economy here in Whyalla.
Governments want more crypto mining facilities to use renewable energy
A government official hopes that other data centers will be able to mine cryptocurrency with renewable energy. He believes that there will be demand for both carbon-neutral and blockchain technology so he anticipates more of these facilities.
This statement was made after the White House Office of Science and Technology Policy’s report estimated that cryptocurrency production alone accounts for 0.3% of global greenhouse gases emissions.
A representative from Lumos Digital Mining said that the new crypto farm could potentially produce around 100 Bitcoin per year, depending on available power. Angelo Kondylas stated that the company could sell some of its solar energy to other users or increase crypto output in order to use surplus electricity from other sources when demand exceeds supply.
Kondylas noted that power generators can suffer large losses when they are switched off during low consumption. “We are basically a sponge.” He explained that we absorb any excess material. The operator plans to eventually double the size the mine facility.
Bitcoin mining using renewable and surplus energy is gaining popularity around the globe. There has been growing investor interest for solar-based coin minting programs in the U.S., and increasing capacity cryptocurrency farms that run on associated petroleum gas ( PG) from Russia’s oil wells.