The country of El Salvador is tapping into its abundant natural resources to create "Volcano Energy." According to a press release sent to Bitcoin Magazine, the aim is to position the country as a major global player in the Bitcoin mining industry while promoting energy competitiveness, diversification and geographic expansion for the Bitcoin network. Adopting a debt-free approach, El Salvador plans to construct a 241 megawatt (MW) renewable power generation park in the Metapán region, combining solar and wind projects.
"This project is a transformative journey that will establish one of the world's largest Bitcoin mining farms," the release said.
"Located in the El Shiste hamlet, within the municipality of Metapán, Santa Ana, this chosen site boasts exceptional solar and wind energy yields in the country."
The park will have a capacity of 169MW of photovoltaic solar energy and 72MW of wind energy. The initial computational power is expected to surpass 1.3 EH/s, marking a significant milestone for the country and industry.
The release stated that "The total commitment for the project is $1 billion, beginning with a first investment of $250 million, bootstrapped by key Bitcoin industry leaders, with collaboration from top developers and manufacturers of renewable energy technology, as well as Bitcoin mining experts on a global scale."
The government of El Salvador will play a crucial role in the planning and execution of the initiative, securing a preferred participation equivalent to 23% of the revenue. The remaining ownership will be divided among investors and reinvested in expanding energy production capacity and advancing Bitcoin mining.
Robert Warren of Distributed Hash explained on Twitter that the reasoning behind leveraging wind and solar is likely to monetize quicker to build upon a base set of geothermal expansion.