A company based in Russia’s second largest city has reportedly received a patent for an EV charging station equipped with a cryptocurrency mining module.
The idea is to allow drivers to earn digital cashback when charging their batteries with electricity, which is no longer as cheap as it used to be.
Russians want to mine cryptocurrencies while charging their EVs
A Russian company in St. Petersburg is preparing to offer electric vehicle (EV) owners a way to receive digital change while spending rubles on charging.
Rozetki SPb, a company marketing the new product, has already applied for a patent, local economic newspaper Delovoi Petersburg (DP) revealed this week.
The online version of a local newspaper that claims to have knowledge of the patent document calls it a “unique idea.”
The latter essentially allows users to earn digital coins minted by rigs powered by a portion of the electricity purchased for EVs. The publication adds:
“Developers estimate that the mined virtual currency could offset some of the cost of charging electric vehicles, potentially benefiting both individuals and businesses that own electric vehicles.”
We also calculate that a used Tesla Model S that drives just over 900 miles (approximately 1,500 km) per month would require 300 kWh of electricity.
Household electricity prices in Russia currently average 6.2 rubles per kWh, so the total cost to the owner should be 2,600 rubles (less than $33).
This includes the running costs of the additional equipment, which the company says can mine 7,200 rubles worth of cryptocurrency (more than $90 at the time of writing).
In theory, Tesla drivers should earn more than 4,000 rubles from all this. But in reality, the picture may turn out to be a little different.
According to a study by Russia’s 2GIS local search platform published last year, 1 kWh can cost electric car owners up to 18.9 rubles.
Experts wonder if Wonder Charger will work
Charging stations are currently being installed all over Russia and around the world, but this project sounds like a first to build a system that mines cryptocurrencies while charging EVs.
Innovators and entrepreneurs alike have been fascinated by the idea of combining mining with other business opportunities. There are also examples of hybrid devices that use the excess heat released during the casting process to heat homes and factories, for example.
Sergey Bezdelov, director of the Industrial Mining Association, believes that the Rosetki project fits well into this category. He told DP:
“Such solutions demonstrate the potential for practical use of mining equipment beyond traditional data centers.”
Many challenges lie ahead, including the need to persuade investors and secure the necessary infrastructure. Next, there will be an obligation to comply with Russia’s new mining regulations, which may also apply to owners of EV stations.
Current regulations require those engaged in activities to register and pay taxes if their monthly electricity consumption exceeds 6,000 kWh, as Andrei Loboda, economist and communications manager for the mining sector, highlights.
Experts contacted by RBC have similar doubts. On Wednesday, the Russian business press published comments on the developers’ claims that both private owners and organizations would benefit from the proposed merger.
The company’s calculations may be accurate only for small home charging stations, since the profitability of installation is estimated on the basis of 6.2 rubles per kWh of electricity.
At the same time, the average price of refueling an electric car at a charging station operated by one of the networks in Moscow is about 18-19 rubles per kWh, said Dmitry Golovin, technical director of Punkt E.
Yuri Brisov, a partner at consultancy Digital and Analog Partners, said using electricity supplied to residential areas for alternative purposes at preferential rates is problematic because it can lead to additional charges and fines.
The “free” or perhaps cheap energy that powers similar projects abroad cannot be used for mining in Russia, which is treated as an industrial activity under current law, the lawyers explained and elaborated.
“Russian mining laws are essentially designed for either very large-scale miners or very small individual miners. In between, only dubious shadow conspiracies thrive.”
Immediately after legalizing cryptocurrency mining in 2024, Russian authorities began restricting cryptocurrency mining in some areas of the country where the mining boom has exacerbated power shortages.
Moscow is also waging a war against illegal crypto farms using increasingly sophisticated means, looking for ways to lure more miners out of the shadow economy.