El Salvador will add more geothermal energy sources to power its Bitcoin City – DiarioBitcoin

El Salvador will add more geothermal energy sources to power its Bitcoin City - DiarioBitcoin

El Salvador will add more geothermal energy sources to power its Bitcoin City - DiarioBitcoin For Daily EditorBitcoin

President Bukele confirmed that El Salvador is investing more to increase its energy production from volcanoes.

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The president of El Salvador, Nayib Bukele, uses an illustration on Twitter as the background of the Twitter image. Bitcoin City, reinforcing from the social network the importance that has been given to this project, which will continue to stand despite criticism.

Now it has confirmed that the country is making investments to ensure a source of geothermal energy for the construction and operation of the next Bitcoin City or Bitcoin city, which will be financed with the proceeds of the so-called “volcano bonds” or “Volcano Bonds”. Bukele said that in the area of ​​the Conchagua volcano there are many possibilities of finding a well that can supply the entire city by itself.

Bukele explained that the energy coming from the volcanoes, administered and maintained by a state company called LaGeo, annually produces more than 1,000 gigawatts for the nation.

The company is now adding more wells to increase its energy production. According to statements by Bukele, the company is preparing the incorporation of four new wells to the system, which would contribute to production. One of the most advanced wells is supposed to be able to provide more than 95 MW (megawatts) of energy to the national grid. Regarding the nature of the energy delivered, Bukele stated:

[Será] clean, cheap and renewable energy, from a source that will last at least a couple of million years.

Energy for Bitcoin City

Specifically, on the subject of feeding Bitcoin city with geothermal energy, Bukele said they are also drilling new wells for this purpose. According to a press release from the country’s presidency, Bukele stated:

And what about the ‘inactive’ volcano Conchagua? We have a 90% probability of finding a well with the capacity to contribute at least 42 MW. Enough to power the entire Bitcoin City.

He then indicated that, if demand increases due to the growth of the city, more than expected, it can always be taken from the other wells that are in preparation. Bitcoin city, announced in September 2021, will be powered by energy from volcanoes that is renewable and green.

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Criticisms and responses

However, the project has been criticized by some who believe that the volcanoes surrounding the city cannot produce this energy. This is the case of the American economist Steve Hanke, who said that the volcano that is supposed to feed the city (the Conchagua) was inactive. However, Bukele rejected this position, stating that most geothermal wells were built around dormant volcanoes. Here is the debate on Twitter between the two of them:

Hanke said first:

How much energy can be extracted from the dormant Conchagua volcano? Where is the feasibility study? El Salvador already has a huge energy deficit and imports 22% of its electricity consumption (@IEA). Without a feasibility study, no one knows how Bitcoin City will affect this shortfall.

To which Bukele responded by stating that they paid him to attack Bitcoin and defend the fiat money and that it was a fraud. Next, the thread shows a table of the energy capacity of El Salvador. According to the president:

El Salvador does not have an energy deficit, in fact, we can produce twice as much energy as we consume.

The maximum energy consumption in El Salvador is 1,030 MW, while the installed capacity is capable of producing 2,065.79 MW from these sources.

In a graph it indicates that it can generate hydro, solar, geothermal, wind energy and also from the mills (sugar cane production).

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Others have also criticized the use of geothermal energy to mine bitcoins in the country, claiming it could end in an environmental disaster.

Sources: Twitter, Note from the Presidency of El Salvador, Bitcoin.com, archive

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