El Salvador to Add More Geothermal Energy Sources to Power Bitcoin City.
El Salvador's president, Nayib Bukele, has announced that the country is investing in a geothermal power source for the building and operation of the planned Bitcoin City, which will be financed with the proceeds of "volcano bonds."Bukele stated, there is a good likelihood of finding a well in the Conchagua volcano area that will be able to power the entire city by itself.
El Salvador's president, Nayib Bukele, has affirmed that the country is investing in expanding its geothermal energy production. Bukele noted that the power generated by the volcanoes, which is managed and maintained by the state-owned corporation Lageo, generates more than 1,000 gigawatts of electricity for the nation each year.
To enhance its power generation, the business is now drilling new wells. According to Bukele's statements, the company is ready to add four new wells to the system, which will help with production. One of the most advanced wells is expected to be able to supply the national grid with more than 95 MW (megawatts) of energy. Regarding the nature of the energy provided, Bukele stated:
It will be clean, inexpensive, and renewable energy derived from a source that will endure at least a million years.
Bukele claimed that they are also drilling new wells for this purpose in order to power Bitcoin City with geothermal energy. According to an article published by the country's presidency, Bukele stated:
We have a 90% chance of discovering a well with enough capacity to contribute at least 42 MW. Enough to power the entirety of Bitcoin City.
He went on to say that if the city's power demand exceeds expectations, other wells in the pipeline can be used to supply it. Bitcoin City, which is set to open in September 2021, will be powered by renewable and environmentally friendly energy sourced from volcanoes.
Some, however, have questioned the initiative, claiming that the volcanoes in the area are incapable of producing this energy. This is the storey of economist Steve Hanke, who claimed that the Conchagua volcano, which is meant to power the city, was dormant. Bukele, on the other hand, refuted this claim, claiming that most geothermal wells were built around dormant volcanoes.
Others have criticised the country's usage geothermal energy for bitcoin mining, claiming that it will end in an environmental disaster.