- Two Salvadoran firms, Volcano Energy and Luxor Technology, have launched the world’s first Bitcoin mining pool using geothermal energy
- El Salvador initiated the plan in 2021 as part of its Bitcoin adoption strategy
- The “Lava Pool” is a public-private enterprise
Two Salvadoran firms have united to launch the world’s first Bitcoin mining pool using geothermal energy. El Salvador announced plans to use geothermal energy from the country’s volcanoes to mine Bitcoin in 2001, and the “Lava Pool” is the result of a collaboration between renewable energy and mining company Volcano Energy and Bitcoin mining software provider Luxor Technology. Geothermal steam produces ten times more generational power than regular steam, making it a great renewable energy source.
Ten Times the Power of Steam
El Salvador revealed plans to mine Bitcoin using geothermal steam in 2021 when it confirmed its plans to use Bitcoin as a form of sovereign currency. Tapping into the massive natural power of volcanos to generate electricity has been around since 2017 when Icelandic researchers successfully drilled into the core of a volcano in the Reykjanes Peninsula.
The process allows access to “supercritical water”, which is water heated into a supercritical state by the magma lakes beneath volcanos that can provide up to ten times more power than regular steam. This water escapes through geysers which are used to power turbines, generating electricity.
Volcano Energy will exclusively mine Bitcoin through the Lava Pool and will allocate 23% of its net income to the El Salvador government as part of a public-private partnership. Led by CEO Josue Lopez and advised by Max Keiser, a close associate of El Salvador’s President Nayib Bukele, Volcano Energy is committed to advancing Bitcoin adoption in the country.
Gerson Martinez, Volcano Energy’s CSO, said that Lava Pool “underscores El Salvador’s pioneering role in the Bitcoin ecosystem.” The company envisions becoming a vertically integrated energy and Bitcoin mining enterprise that will benefit both investors and Salvadoran citizens.
El Salvador Has Big Plans
The “Lava Pool” initiative forms part of El Salvador’s broader strategy to integrate Bitcoin into its energy infrastructure, leveraging its renewable energy resources. Mining can generate revenue for new energy projects, especially in remote areas, while maintaining flexibility during peak demand.
The Salvadoran government plans to reinvest mining profits into energy infrastructure to stimulate economic growth. In June, Volcano Energy secured $1 billion in investment commitments, primarily led by Tether Energy, with $250 million already allocated for developing renewable energy and Bitcoin mining ventures in the country.
