Russians hope to mine crypto while charging their EVs

A company based in Russia’s second-largest city has reportedly patented an EV charging station equipped with a crypto mining module.

It claims the idea is to help drivers earn some digital cash back as they top up their batteries with electricity, which isn’t as cheap as it once was.

Russians hope to mine crypto while charging their EVs

A Russian firm incorporated in St. Petersburg is preparing to offer owners of electric vehicles (EVs) a way to receive some digital change while spending rubles on charging.

The company that’s pitching the new product, Rozetki SPb, has already filed for a patent, the local business daily Delovoy Peterburg (DP) unveiled this week.

The online edition of the regional newspaper, which claims to have acquainted itself with the patent documentation, calls it a “unique idea.”

The latter boils down to allowing users to gain digital coins minted by the rig that should be powered by some of the electricity purchased for the EV. The publication added:

They also calculate that a used Tesla Model S would need 300 kWh of electricity for a monthly mileage of a little over 900 miles (about 1,500 km).

With household electricity rates in Russia currently standing at an average of 6.2 rubles per 1 kWh, the whole thing should cost the owner a total of 2,600 rubles (less than $33).

That’s including the running costs for the additional equipment, which the company says is capable of mining 7,200 rubles’ worth of crypto (over $90 at the time of writing).

In theory, a Tesla driver should earn more than 4,000 rubles out of all this. But in practice, the full picture might turn out to be a little different.

According to a study by the Russian 2GIS local search platform published last year, 1 kWh may cost an electric car owner up to 18.9 rubles.

Experts wonder if the wonder charger work

Charging stations are now popping up across Russia and around the world, but the project to create a system that mines crypto while charging EVs sounds like a first.

Innovators and entrepreneurs alike have been fascinated by ideas to combine mining with other business opportunities. And there are examples of hybrid devices which, for example, use excess heat released in the minting process to heat homes and industrial sites.

Sergei Bezdelov, director of the Industrial Mining Association, believes the Rozetki project fits well into this category. He told DP:

There are a number of challenges ahead, including the need to convince an investor and ensure the necessary infrastructure. Then comes the obligation to comply with Russia’s new mining rules, which would potentially apply to the owners of the EV stations, too.

Current regulations require those engaged in the activity to register and pay taxes if their monthly power consumption exceeds 6,000 kWh, as highlighted by Andrey Loboda, economist and communications manager in the field of industrial mining.

Experts contacted by RBC have their doubts as well. On Wednesday, the Russian business news outlet published its comments on the developers’ claim that both private owners and organizations will benefit from the proposed integration.

The company’s calculations may be accurate only for small home charging stations, as the profitability of the installation has been estimated based on a rate of 6.2 rubles per kWh of electricity.

At the same time, the average price of refueling an electric car at a charging station run by any of the networks in Moscow is approximately 18-19 rubles per kWh, per Dmitry Golovin, Technical Director of Punkt E.

According to Yuriy Brisov, partner at the Digital & Analogue Partners consultancy, using electricity supplied to residential areas at preferential rates for that alternative purpose will be a problem, as it may result in additional charges and fines.

The “free,” or supposedly cheap energy that underpins similar projects abroad is not available for mining in Russia, where the current legislation treats it as an industrial activity, the lawyer explained and elaborated:

Soon after legalizing cryptocurrency mining in 2024, Russian authorities started restricting it in parts of the country where the mining boom is causing growing electricity shortages.

Moscow is also waging a war on illegal crypto farms, employing increasingly sophisticated means, while exploring ways to bring more miners out of the shadow economy.

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