Thursday, May 30, 2024

Tether is investing in El Salvador’s $1 billion renewable energy project

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Stablecoin issuer Tether has announced that it will partner with bitcoin-friendly country El Salvador to invest in a planned $1 billion renewable energy initiative.

The Central American country is continuing its efforts to drive the adoption of Bitcoin (BTC) after becoming the first country to make legal tender for BTC about three years ago. The latest is a renewable energy area in Metapán that aims to harness solar and wind energy that will monetize bitcoin mining operations.

Tether is among the first round investors to raise capital for the development of Volcano Energy, a soon-to-be developed 241-megawatt (MW) renewable energy park. The site is located in Metapan and will include 169 MW of solar PV and 72 MW of wind.

Related: What It’s Actually Like to Use Bitcoin in El Salvador

The energy produced will power bitcoin mining farms in El Salvador, where Tether estimates the park’s computing power to be in excess of 1.3 exahashes per second. This output would put Volcano Energy’s cumulative bitcoin mining hash rate in the top 20 operating pools globally.

Tether Chief Technology Officer Paolo Arduino said that the investment represents the stablecoin issuer’s intention to drive investment in renewable energy production as well as mining infrastructure.

Volcano Energy CEO Josue Lopez said he envisions the park as a benchmark for Bitcoin mining powered by renewable resources as the sector continues to innovate in a competitive and inclusive environment:

“Currently, more than 52% of bitcoin mining is done sustainably. We believe this percentage will rise significantly in the coming years with significant investments like ours.”

Tether did not disclose the investment amount in correspondence with Cointelegraph.

Bitcoin proponent and broadcaster Max Keizer is heavily involved in El Salvador’s adoption efforts, both as an advisor to President Neb Bukele as well as Chairman of Volcano Energy.

Seif El-Din Ammous, economist and author bitcoin standard, He is another Bitcoin advocate who is now involved in the governance of El Salvador after joining the National Bitcoin Office as an economic advisor.

The ubiquity of Bitcoin and the ability to widely use the prominent cryptocurrency in El Salvador paints an even more interesting picture, as Cointelegraph’s Joe Hall discovered earlier in 2022 during a visit to the Central American country.

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