In the remote Zambian town of Zengamina, Family Mining’s unique bitcoin operation is creating transformative changes. Reflecting the indomitable force of nature to power in order to propel its success. Gridless is pioneering this cutting-edge effort by tapping into the waste energy from a local hydro-electric plant. This approach raises a huge amount of money. Nearly a third of the plant’s revenue comes from this one strategy. This reliable stream of revenue provides flexibility for the plant to continue offering low-cost electricity to the community it proudly serves. The bitcoin mine opened during the dot com boom after raising $3 million in charitable donations. In doing so, it helps further a bigger movement focused on bringing sustainable energy and economic opportunity to Africa’s rural communities.
Zengamina's bitcoin mine is plugged directly into a hydro-electric power plant that channels the Zambezi River's torrent through massive turbines. This arrangement connects to the large number of available run-of-river hydroelectric designs over Africa. It provides a carbon free and cost effective energy source to power their operations. Running on 120 computers, the mine runs through a massive combination of complex equations to confirm bitcoin transactions, making the mine $80,000 after costs per bitcoin mined. Keep in mind that the value of bitcoin can vary widely.
Gridless runs this mine—one of six sites the company runs across three African countries—as one of six sites. They have ambitious plans to grow their impact even further. The company is actively raising tens of millions of dollars to build its own hydro-plants from scratch, aiming to bring electricity to more rural areas while continuing their bitcoin mining operations. This dual-purpose approach helps tackle the energy and economic challenges remote communities are experiencing.
The partnership among Gridless, the energy company that operates Zengamina Hydro, and Gridless has been essential. They also offer a steady, low-cost electricity source for the bitcoin operation. Over the last decade, this innovative approach has led to a surprisingly sustainable model for local development. During a recent T4America town hall, Daniel, a representative from the Winning on Energy team, emphasized the centrality of this partnership.
"Every day we were wasting over half of the energy we could generate which also meant we're not earning from that to meet our operating expenses. We needed a major user of power in the area and that's where the game-changing partnership with Gridless came in," he stated.
The changes that electricity have made on Zengamina’s residents have been just as deep. And see what better access to power has done to improve their lives.” Lucy Machayi, local resident
"Before the town got power, it was basically just the bush," Machayi said. "Electricity completely changed the lives of people here."
Damian, another resident, corroborated these feelings by recalling what it was like to finally receive electricity.
"Until I got power I had nothing and couldn't do anything. When I got power I bought everything at the same time," he explained.
The success of the Zengamina project has attracted additional investment to the region. With large funding already in hand, Zengamina Hydro is expanding its coverage to more villages and further connecting with the national grid. This expansion is largely expected to provide more affordable access to more reliable electricity. In addition, it allows us to sell our excess energy back to the grid, creating a revenue stream that can be used to sustainably fund future developments.
Gridless’s vision goes deeper than short-term economic benefits. The firm’s long-term hope is to realize a deeper change in coastal African communities via flexible energy frameworks that focus on being scalable and adaptable. Janet Maingi, Climate Finance Advisor for Gridless, stressed the significance of this approach.
"A consumer-driven, adaptive energy model is essential for scalable, affordable, and sustainable energy access that meets the needs of African communities," Maingi stated.
Zengamina’s bitcoin mine might be tiny in the huge global bitcoin mining ecosystem, but it is an important piece. Through this transformative application of renewable energy, it drives enormous economic development potential. It’s the new projects popping up across Africa. They’re the key to advancing equity and opportunity in areas that have traditionally been underserved by conventional infrastructure.