El Salvador’s President Nayib Bukele is exploring innovative ways to leverage the country’s volcanic geothermal energy, hinting at a potential “rent-a-volcano” program.
The said initiative would allow third-party companies to harness renewable geothermal power for bitcoin mining, an idea that could position El Salvador as a global leader in sustainable cryptocurrency production.
The president recently responded to an online discussion praising El Salvador’s use of natural energy for producing “green bitcoin,” stating, “A ‘rent your volcano to mine bitcoin’ program might actually make sense.”
If implemented, such a program could attract significant foreign investment, fostering economic growth while showcasing the potential of renewable energy. El Salvador’s geothermal bitcoin mining activities began in 2021, powered by the Tecapa volcanic complex. According to data from the National Bitcoin Office, the country had mined approximately 474 BTC using 1.5 MW of geothermal power as of May 2024.
Bitcoin Mining and Climate Considerations
Bukele has long been an advocate for harnessing volcanic energy for bitcoin mining. In 2021, he shared a video of the Berlin geothermal plant under construction, which showcased bitcoin miners being connected to the facility. However, the president’s geothermal ambitions have faced criticism from environmental experts.
El Salvadoran ecologist Ricardo Navarro expressed doubts about the feasibility of sustaining bitcoin mining with geothermal energy. He remarked, “I am under the impression that Bukele doesn’t really understand what is going on with the energy situation. That is certainly going to complicate demand.”
Despite these concerns, the initiative aligns with broader goals of reducing carbon footprints associated with traditional bitcoin mining, which often relies on fossil fuels. If successful, the program could help mitigate the environmental impact of cryptocurrency production while promoting renewable energy.
International Interest in Volcano Energy
El Salvador’s geothermal potential, supported by more than 170 volcanoes, has already attracted international investors. In June 2023, stablecoin company Tether announced its participation in a $1 billion investment in Volcano Energy, a project to construct a 241 MW renewable energy park in Metapán.
These developments signal growing interest in sustainable bitcoin mining, with El Salvador at the forefront of integrating cryptocurrency and green energy.
While challenges remain, including the scalability of geothermal power and environmental concerns, Bukele’s vision of renting volcano energy could redefine how nations harness natural resources to fuel technological innovation.
