Ripple Creates $44 Million Solar Energy Fund With Nelnet
The XRP firm will contribute the majority of funding to the clean energy initiative.
Key Takeaways
- Ripple has announced that it will contribute the majority of funding toward a $44 million energy fund with Nelnet.
- Projects funded by the initiative could offset more than 1.5 million tons of carbon dioxide emissions over 35 years.
- Ripple is already one of the least energy-intensive blockchains, but the initiative will put it in good company with other firms.
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Ripple has announced that it will create a clean energy fund in cooperation with Nelnet Renewable Energy.
Ripple Will Invest In Solar Energy
Together, Ripple and Nelnet will create a $44 million joint investment into Nelnet’s solar energy investment fund. This effort will fund solar energy projects within the United States.
Projects funded by the initiative could offset more than 1.5 million tons of carbon dioxide over 35 years, according to a press release.
Though it is not clear exactly how much Ripple will contribute, the firm will contribute the majority of funding
Ripple’s Head of Social Impact, Ken Weber, called clean energy a “major priority across every industry.” He noted that clean energy technology will become important “as the adoption of cryptocurrencies and blockchain continues to grow.”
The press release notes that this is not Ripple’s first clean energy initiative. The firm is also part of the Crypto Climate Accord, and in 2020 it partnered with Energy Web and the Rocky Mountain Institute to decarbonize the XRP Ledger. It aims to become carbon net-zero by 2030 through its investments and activities.
Ripple’s XRP Is Already Energy-Efficient
Unlike Bitcoin and many other cryptocurrencies, Ripple’s XRP token does not rely on mining, which is an extremely energy-intensive process.
In fact, some surveys suggest that XRP is one of the most energy-efficient cryptocurrencies as it uses only 0.0079 KWh per transaction. By contrast, Bitcoin uses 707 kWh per transaction.
Despite Ripple’s low energy requirements, it will be in good company with other crypto firms that have created energy initiatives. Square, ConsenSys, and MicroStrategy have all participated in energy efficiency efforts over the past several months.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.
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