Bitcoin mining operations are regularly criticized for its energy-intensive nature. Reducing its environmental cost is now one of the concerns of cryptocurrency players.
In this context, KenGen, most major energy supplier in Kenya, which makes a big signal towards companies specializing in this field. So it offers them excess energy from providing them with geothermal energy.
The majority of potential users appear to be located in the United States and Europe. In fact, Africa does not currently mining farm. The condition imposed by KenGen is that the beneficiaries locate their operations around their main geothermal plant. It is located 123 km from the country’s capital, Nairobi.
According to KenGen, this installation is as close as possible to its essential factory. “We welcome them here because we have the necessary space and the electricity is close, which contributes to the stability of the system. Power requested varies, some have asked to start with 20MW for future stops. Crypto-currency mining is very energy intensive »said Peketsa Mwangi, director of geothermal development at KenGen.
Renewable energy for cleaner mining
Bitcoin mining operations are regularly cited for the large carbon footprint they generate. One way to address these concerns is to use geothermal energy. In fact, KenGen primarily requires use renewable resources for production.
Currently, their geothermal facilities can deliver a capacity of around 900 MW. However, Kenya has a potential geothermal energy of 10,000 MW around the Rift Valley. While the company expressed its intention to support Bitcoin miningthe country does not yet have any regulations in place to regulate activities in this sector.
The government cites the roll-out of digital currency by the central bank. However, the authorities are still measured by digital asset trading. They seem to be a proliferation of scams.
If the KenGen project succeeds, Kenya will join El Salvador, a pioneer in the use of alternative forms of energy for crypto-asset mining. As a reminder, after announcing that Bitcoin would become legal tender in 2021, the Central American country developed cryptocurrency-powered cryptocurrency volcanic mining.
To address the environmental difficulties of Bitcoin mining, the actors called for the use of renewable resources. Because of that, Political representatives are studying how to regulate this sector. They will have to develop proposals after studying various aspects such as Bitcoin-related carbon emissions, as well as energy legislation.
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