The authorities of El Salvador have announced the Volcano Energy project with a capacity of 241 MW. It involves the use of renewable energy sources for bitcoin mining.
Wait is over! The power of @Volcano_Energy is here 🌋🔌#ElSalvador #BTC #Bitcoin #VolcanoEnergy pic.twitter.com/HTkd5ZOKfM
— Volcano Energy 🌋🔌 (@Volcano_Energy) June 5, 2023
The initiative aims to make El Salvador a major global player in the cryptocurrency mining industry. At the same time, the project will lead to increased energy competitiveness, diversification and geographical expansion of the bitcoin network.
“Located in El Chista, in the municipality of Metapan, Santa Ana, the selected site boasts the country’s exceptional solar and wind power generation potential,” – the press release says.
It is assumed that the first type will account for 169 MW of the park’s capacity, the second – 72 MW. The hash rate is expected to be 1.3 EH/s.
Volcano Energy is valued at $1 billion. The first $250 million has already been secured through partnerships with leading developers and manufacturers of renewable energy technologies, as well as bitcoin mining experts.
The government of El Salvador will have a 23% stake, and the authorities will play a decisive role in planning and implementing the initiative.
Recall that the legislative assembly of the country approved a bill on tax incentives for local companies in the technosector for 15 years.
In September 2021, the authorities of El Salvador recognized bitcoin as a legal means of payment. The International Monetary Fund criticized the decision and recommended depriving the cryptocurrency of this status.
In October of the same year, the country began mining bitcoin using geothermal volcanic energy.
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