Volcano Energy, a prominent renewable energy company, has announced a staggering $1 billion commitment to construct a state-of-the-art 241-megawatt (MW) Bitcoin mining facility in the picturesque Metapán region of El Salvador. The ambitious project, supported by Tether, the issuer of the popular stablecoin USDT, aims to revolutionize the industry by harnessing the power of renewable energy sources.
The mining company says that the mining site will be powered by an impressive combination of 169 MW of solar energy and 72 MW of wind energy. With these sustainable energy sources, the mining operation will possess a computing power exceeding 1.3 exahash/second (EH/s), solidifying its position as a major player in the crypto mining space. The location of the mining facility in Metapán, Santa Ana, showcases El Salvador’s commitment to embracing renewable energy solutions.
Notably, the Salvadoran government will play a crucial role in the planning and execution of the project and has secured a preferred participation equivalent to 23% of revenues, signaling the country’s dedication to supporting innovation and economic growth. The remaining 27% ownership will be held by outside investors, while Volcano Energy plans to reinvest 50% of the venture’s revenues to expand energy production and mining capacities, ensuring sustainable growth for the future.
While previous mining initiatives in El Salvador focused on geothermal energy, Volcano Energy’s decision to integrate solar and wind power presents an exciting new approach to mining operations. Although the exact connection between the renewable energy park and volcanic activity remains unclear, the company expressed in its press release that this mining site serves as a pathway to El Salvador’s geothermal future, hinting at potential future developments.
For Tether, this partnership with Volcano Energy represents a significant move to diversify its strategic ecosystem. Paolo Ardoino, the Chief Technology Officer of Tether, lauds the collaboration as one of the most ground-breaking initiatives the stablecoin issuer has supported thus far. Tether has been actively exploring investment opportunities in various regions, including recent ventures in Uruguayan bitcoin mining and bolstering its bitcoin reserves to support USDT.
This development also sheds light on a broader trend in the crypto mining industry, as companies and mining firms increasingly seek opportunities outside of North America. With mounting regulatory scrutiny and limited avenues for new developments, Latin America and the Middle East have become attractive destinations for investments in the sector. Volcano Energy’s ambitious project in El Salvador serves as a testament to the global nature of crypto mining and the need for companies to adapt to evolving landscapes.
By combining renewable energy sources with cutting-edge technology, the partnership between Volcano Energy and Tether paves the way for a more sustainable and efficient future in crypto mining. This ambitious endeavor not only positions El Salvador as a pioneering country in the crypto sphere but also contributes to the ongoing transformation of the global mining sector. As the industry continues to evolve, collaborations like this hold the promise of a greener and more resilient crypto ecosystem, fostering innovation and driving progress in the pursuit of sustainable digital currencies.