Tether invests in $1B renewable energy project in El Salvador.
Stablecoin issuer Tether has announced that it will be partnering with El Salvador, a Bitcoin-friendly nation, to invest in a renewable energy initiative worth $1 billion.
The Central American country has been making efforts to promote the adoption of Bitcoin (BTC) since becoming the first nation to legalize it as a legal tender three years ago. The latest initiative is a renewable energy park in Metapán that will harness solar and wind energy to power Bitcoin mining operations, which will also be monetized.
Tether is one of the investors in the first round capital raise for the development of Volcano Energy, a soon-to-be-developed 241-megawatt (MW) renewable energy park that will be located in Metapán and will comprise of 169 MWs of photovoltaic solar energy and 72 MWs of wind energy.
Related: What it’s actually like to use Bitcoin in El Salvador
The energy produced will be used to power Bitcoin mining farms in El Salvador, with Tether estimating that the park’s computation power will exceed 1.3 exahashes per second. This output would put the cumulative Bitcoin mining hash rate from Volcano Energy in the top 20 pools operating globally.
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Tether’s chief technology officer, Paolo Ardoino, said that the investment shows the stablecoin issuer’s intention to promote investment in renewable energy production as well as mining infrastructure.
Volcano Energy CEO Josue Lopez said that he envisions the park being a benchmark for Bitcoin mining powered by renewable resources as the sector continues to innovate in a competitive and expansive environment:
“Currently, more than 52% of Bitcoin mining is being done sustainably. We believe this percentage will significantly increase in the coming years through important investments like ours.”
Tether did not disclose the amount of its investment in a correspondence with Cointelegraph.
Max Keiser, a Bitcoin proponent and broadcaster, is involved in El Salvador’s adoption efforts, acting as an adviser to President Nayib Bukele as well as the chairman of Volcano Energy. Economist and author of The Bitcoin Standard, Saifedean Ammous, is another Bitcoin advocate who is now involved in El Salvador’s governance after joining as an economic adviser to its National Bitcoin Office.
The proliferation of Bitcoin and the ability to use it widely in El Salvador is an interesting development, as highlighted in Cointelegraph’s article by Joe Hall during his visit to the Central American country earlier in 2022.
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