Stablecoin provider Tether has recently announced its participation in a $250 million investment in a renewable energy project in El Salvador. The project, known as “Volcano Energy,” is located in the northern city of Metapán and aims to raise $1 billion with the help of various investors.
Tether’s involvement in the project is particularly focused on helping create a major bitcoin mining farm powered by solar and wind energy sourced from the volcanic region. The 241-megawatt renewable energy park will consist of 169 megawatts of solar power and 72 megawatts of wind power, which, according to Tether, could generate more than 1.3 exahash of computing power – a valuable resource for cryptocurrency mining operations.
El Salvador’s Bitcoin consul and CEO of the project, Josue Lopez, highlighted the increasing role of sustainable methods in bitcoin mining, claiming that over 52% of such mining is already being performed in an eco-friendly manner. Lopez believes that this percentage will significantly increase in the future, as investments like the one from Tether ensure the industry’s progress in this direction.
However, not every aspect of the project is met with universal approval. Ricardo Navarro, a leading environmentalist in El Salvador, has voiced concerns that President Nayib Bukele’s volcano-powered bitcoin mining plans could have disastrous consequences for the environment. Navarro emphasizes the country’s existing issues with water supply and argues that a policy supporting geothermal energy should not come at the expense of basic resources like groundwater and steam.
As of now, the project’s progress remains uncertain, with some of the bonds necessary to finance it experiencing delays. Despite these setbacks, the Volcano Energy initiative has garnered attention as an innovative and ambitious attempt to merge the worlds of renewable energy and cryptocurrency mining.
In conclusion, Tether’s involvement in the Volcano Energy project in El Salvador represents a bold and potentially groundbreaking merger of sustainability and cryptocurrency mining. However, concerns from local environmentalists, like Ricardo Navarro, serve as a reminder that the path to a green Bitcoin mining future should be approached with caution and consideration of the potential risks involved. As the industry evolves, it is crucial to find a balance between technological advancements and environmental preservation.
Source: Blockworks
