A subsidiary of Tokyo Electric Power Co. (TEPCO), Agile Energy X, has ventured into Bitcoin mining as part of a groundbreaking initiative to utilize wasted renewable energy. This move is designed to promote the use of green energy while offering a practical solution for Japan’s energy waste problem.
Agile Energy X is currently testing the use of surplus solar energy to power Bitcoin mining operations. The company’s president, Kenji Tateiwa, expressed optimism about the project, highlighting its potential to drive the adoption of more renewable energy sources in Japan. “What we are doing has few parallels in Japan,” Tateiwa remarked. “If our framework succeeds, it could encourage the introduction of more green energy into the grid.”
Bitcoin Mining to Capture Wasted Energy Near Solar Farms
The inspiration for this project comes from Japan’s energy management practice known as “output control.” This process involves curtailing renewable energy production to prevent grid overloads, which often leads to substantial energy waste. In 2023, Japan’s output control policies resulted in the loss of 1,920 gigawatt-hours of renewable power—equivalent to the annual electricity consumption of 450,000 households.
To address this waste, Agile Energy X has installed Bitcoin mining machines near solar farms in Gunma and Tochigi prefectures, close to Tokyo. These installations aim to capture the surplus energy that would otherwise be wasted, redirecting it into cryptocurrency mining operations.
According to company simulations, if renewable energy were to provide 50% of Japan’s energy supply, up to 240,000 gigawatt-hours could go unused each year. Agile Energy X estimates that utilizing just 10% of this surplus power for Bitcoin mining could generate around $2.5 billion (360 billion yen) annually in Bitcoin. Tateiwa believes that these profits could enhance corporate earnings while simultaneously supporting the expansion of green energy projects.
Industry Support for Japan’s Innovative Approach
This innovative approach has captured the attention of industry leaders, including Fred Thiel, CEO of Marathon Digital Holdings, who praised Japan’s initiative. Similar efforts are already being implemented in the U.S., particularly in Texas, where renewable energy is being used for grid balancing.
Agile Energy X’s initiative is part of a broader trend of integrating renewable energy with cryptocurrency mining, as companies seek to reduce waste and generate new revenue streams.
Marathon Digital Holdings Turns Excess Heat Into Community Heating in Finland
Meanwhile, Marathon Digital Holdings, the world’s largest Bitcoin mining company, has launched a pilot project in Finland that uses excess heat generated from Bitcoin mining to provide heating for an entire town. In June 2023, Marathon introduced a 2-megawatt pilot project in Satakunta, Finland, designed to heat over 11,000 residents by recycling heat from its digital asset computing operations.
The project represents Marathon’s first district heating initiative in Europe, showcasing how Bitcoin miners are exploring ways to maximize revenues and efficiency, particularly in the lead-up to the 2024 Bitcoin halving, which will reduce block rewards from 6.25 BTC to 3.125 BTC.
In addition to generating heat for local communities, Marathon is also focused on developing new revenue streams by selling excess heat from its mining facilities. This strategy is part of a broader effort to achieve zero-cost power for digital asset computing and contribute to the global energy transformation.
Both TEPCO’s Agile Energy X and Marathon Digital’s initiatives reflect a growing trend in the cryptocurrency industry to integrate environmental sustainability with digital asset production, offering a win-win solution for both energy efficiency and economic growth.
