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Bitcoin mining is a lucrative activity, but it has attracted scrutiny over the years because of the high amount of energy consumed by miners. However, some countries have continued to embrace Bitcoin mining because of the financial benefits. In Kenya, the country’s largest electricity producer, KenGen, has announced plans to attract Bitcoin miners that will use geothermal activities. Miners will benefit from the surplus geothermal energy.
Kenya KenGen plans to support Bitcoin miners
Kenya is slowly recording growth in its cryptocurrency market in terms of investments. However, cryptocurrency mining in the country is yet to kick off, as no cryptocurrency mining firms operate there.
KenGen could be reaching out to Bitcoin miners to create utility for its surplus electricity. The company’s announcement comes at a strategic time, given that bans on proof-of-work mining are starting to take effect, with New York’s senate recently passing a bill that prevents Bitcoin mining in the state.
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KenGen is the largest supplier of electricity in Kenya. The company is committed to generating renewable energy, and it claims that 86% of energy has been derived from renewable resources like hydro and wind, while the remaining 14% of thermal energy.
The company has yet to unveil the details about the surplus energy capacity available to the Bitcoin miners. However, it has revealed that miners would be allowed to build mining firms at the company’s geothermal power station based in Olkaria, Naivasha.
In a recent interview, the company’s development director, Peketsa Mwangi, noted that the company was well-equipped to give stability to miners because they had access to both space and power.
Addressing the issue of carbon emissions
The move by the company aligns with the objectives of the crypto mining sector to address the issue of carbon emissions from crypto mining activities. Governments have heavily opposed crypto mining activities using fossil fuels because of their negative environmental impacts.
The issue of climate change has been a heated topic globally over the years. Last year, China imposed a ban on cryptocurrency mining activities. Mining firms operating in the country before the ban were forced to move to other countries like the US and Europe.
Kenya does not host any cryptocurrency mining companies. The country has an estimated potential of 10,000 MegaWatt (MW) of geothermal energy capacity, ranking it as an ideal hub for cryptocurrency activities.
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