Kenyan Company Mines Bitcoin Using Waste Energy

Kenyan Company Mines Bitcoin Using Waste Energy

Kenyan bitcoin mining company Gridless has recently revealed how it is helping local communities to reduce electricity costs by using excess generated power to mine bitcoin. The Gridless model has been hailed because it potentially helps to decentralize bitcoin mining as well as move some hash power to Africa.

Using Waste Energy to Mine Bitcoin

Gridless, a Kenya-based crypto mining company, has said the excess electricity from mini-hydro generators is now being used to mine Bitcoin. The revenue generated from bitcoin mining helps to reduce or subsidize the cost of electricity.

In a recent statement, Gridless said while mini-hydropower plants that generate below 100 kilowatts are being used so far, the company’s objective is to work with larger plants that can generate 500 kilowatts. The bitcoin mining company said:

"We’ve been working with mini-grid hydro generators in Kenya on how to use their excess capacity for bitcoin mining, which also significantly reduces the cost of power to the local community. Small below 100 Kilowatts sites now, working towards 500 Kilowatts soon."

According to one Twitter user known as Nick H, the communities are only using an equivalent of 10% of the generators’ capacity in the Kenyan villages with power plants. Most of the power plants, which are being built in the respective villages, are currently wasting the energy being produced.

Nick H suggests that by "plugging in a few bitcoin miners to offtake the excess power," the respective Kenyan villages can lower their power prices by as much as 90%.

Decentralizing Bitcoin Mining

Meanwhile, the Gridless model, if widely adopted, could potentially see Kenya and the African continent, in general, become an important bitcoin mining hub, in addition to lowering respective Kenyan communities' electricity costs.

"This business model serves as a welcome decentralization of the overly centralized mega-site bitcoin mining that goes on today. Not only does it move some hashing power to Africa, but it also further distributes hashing to smaller sites," Erik Hersman, a founder at Gridless, said in a blog post.

Many users have tweeted about Gridless’ "absolutely incredible" business model, and some, like Anita from Guatemala, asked how this could also be done in her country. In response, Gridless has advised those interested in replicating in their respective countries to find a "partner who likes to build small hydro and then work with them on the model so that it becomes a win-win-win for the power producer, community, and miner."