El Salvador’s authorities announced the Volcano Energy project with a capacity of 241 MW. It envisions using 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 is aimed at turning El Salvador into a major global player in the cryptocurrency mining industry. At the same time, the project would raise energy competitiveness, diversification and geographic reach of the Bitcoin network.
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\”Located in El-Shiste, in the municipality of Metapan, Santa Ana, the chosen site can boast exceptional potential in solar and wind energy generation in the country\”, — according to the press release.
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It is expected that the first phase will require 169 MW of park capacity, and the second 72 MW. Hashrate is expected to be around 1.3 EH/s.
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Volcano Energy is expected to cost $1 billion. The first $250 million has already been allocated through collaboration with leading renewable-energy technology developers and manufacturers, as well as Bitcoin mining experts.
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The Salvadoran government will hold a 23% stake and will play a decisive role in planning and implementing the initiative.
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Earlier, the country’s legislative assembly approved a bill on tax incentives for local tech-sector companies for 15 years.
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In September 2021, El Salvador’s authorities recognized Bitcoin as legal tender. The International Monetary Fund criticized the decision and recommended stripping the cryptocurrency of that status.
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In October of the same year, the country began mining Bitcoin with geothermal volcanic energy.