Volcano Energy, the pioneering Bitcoin mining company in El Salvador, is making solid strides in the territory. In an interview with Diario El Salvador, Josué López, CEO of the company, stated that the renewable energy plants they will use to power their operations are in advanced stages of construction, with mining set to commence in the coming months.
A Bitcoin mining company is an organization that employs highly powerful computers to solve mathematical problems, verifying and adding transaction blocks to the cryptocurrency network, and receiving new bitcoins as a reward for their efforts.
Given the substantial energy consumption involved in this computational process, Volcano Energy has opted to construct its own renewable power sources. This includes a photovoltaic and wind power plant initially, with plans for a geothermal plant within the next four to seven years.
«We’re not just a Bitcoin consumption or mining company; that is, we don’t only consume energy, but the idea is to produce the same energy we are consuming,» explained López.
The photovoltaic plant, expected to be operational by the end of this year to commence mining in January 2025, will generate 85 megawatts (MW), while the wind power plant could begin mining in the second quarter of 2025 with a production of 49.6 MW. Surplus energy generated will be injected into the national grid.
«We expect to reach over 130 megawatts in total. However, with time, we could reach up to 242 megawatts through a combination of wind and photovoltaic,» López emphasized.
Furthermore, once completed, the geothermal plant could generate between 35 to 45 MW, further enhancing their operational efficiency and reducing costs compared to other mining farms.
«We plan to be one of the most efficient miners with lower costs since we build our own generation plants, instead of buying energy from other generators who charge commissions for services and profit… We will mine with 20% of what most other companies mine, giving us greater capacity to withstand volatility and hold Bitcoin,» López added.
Benefits for Salvadorans
López highlighted several benefits for Salvadorans stemming from their operations. Firstly, the Salvadoran government will receive 23% of all the company’s mining profits, as per an agreement signed last year. Additionally, surplus energy injected into the national grid will be priced «well below the norm.»
«We hope that our surplus energy can reduce the tariff, which usually tends to rise,» López noted. Furthermore, once the geothermal plant is operational, providing nearly 24-hour mining support, they plan to «donate all the energy from solar and wind production to the people.»
Lastly, López mentioned they are training and recruiting Salvadoran professionals for the operation, ensuring the availability of local human resources for similar operations in the future.
«We have brought in the best specialists from around the world and asked them to teach engineers from the country so that the next generation of Salvadorans can design and build energy and mining projects within the country,» López concluded.