Alderney is exploring a plan to use excess renewable energy to power Bitcoin mining, a move that local officials see as a way to link clean power generation with a growing digital sector. 

As ITV reported, the Channel Island, located between England and France, is sending a delegation to the Bitcoin Conference in Amsterdam to seek guidance on how surplus electricity from wind, tidal, and solar systems could support mining operations.

The proposal focuses on "stranded energy," which refers to power produced beyond local demand. Alderney leaders say that surplus can be an asset that could run mining computers on the island.

They also see potential economic benefits from hosting miners who would base their operations locally, pay taxes, and bring new workers. 

Representative Edward Hill said there is "no risk, because all we're talking about is people coming to this island and making it their fiscal base, paying tax, and bringing younger people to the island," per ITV.

Cryptocurrency mining remains an energy-intensive activity. The International Monetary Fund estimated in 2024 that mining and data centers use 2% of global electricity. 

This creates significant climate concerns. High energy demand can strain grids and increase pollution from power plants that rely on dirty fuels. 

Alderney's interest comes during a long period of rising Bitcoin value, with the cryptocurrency reaching record highs in recent years. 

Supporters of Alderney's plan believe renewable-powered mining can lessen those impacts and even accelerate clean-energy investment. 

James Butterfill, head of research at crypto firm CoinShares, said renewable projects become more viable when miners buy excess electricity since "the payback period is a lot shorter for renewable investments," per ITV.

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"I think if you walked into a server room and a Bitcoin mining center, you probably couldn't tell the difference," Butterfill said. "They're just computers on racks and they do one thing: mine Bitcoin."

Critics have raised questions about timing and feasibility, however. Alderney has proposed wind and solar projects, and companies have assessed its strong tidal flow. However, none of the major projects is operating.

Representative Alex Snowdon described himself as "a little cautious" about investing in mining systems and said he is "not quite sure that this vision is actually deliverable on a little island," per ITV.

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