• KenGen, which is Kenya’s largest energy production firm, to produce energy for crypto mining industries
• The energy produced will be completely clean for environmental conservation
• 80% of KenGen’s energy comes from renewable sources

KenGen plans to set up a base supplying clean energy for crypto mining industries. The energy-producing firm plans to base the energy park at its current power generation hub in Olkaria, Kenya.

This plan was set in after several crypto companies approached KenGen for the supply of intensive geothermal energy.

“We’ll have them here because we have the space and the power is near, which helps with stability. Their power requests vary. Some of them had asked to start with 20MW to be later graduated. Crypto mining is very energy intensive,” says Peketsa Mwangi, director for Geothermal Development at KenGen.

Though the total number of companies that require the energy is yet to be disclosed, the director pointed out that the power needed starts from 20 megawatts.

The Aim Is To Produce Clean Energy

Bitcoin mining emits approximately 40 billion pounds of carbon emissions in the US alone. The proof-of-work in crypto mining requires intensive computing power, which uses high amounts of electricity. The crypto industries are working towards reducing this carbon emission level by 100% come 2030.

KenGen’s energy park aims to produce clean, renewable energy from solar and wind for the mining companies.

KenGen had reported that it was already done with plans to set up the energy park in February 2022. The energy park will leverage the geothermal steam that is otherwise keenly priced.

Concerns Over Environmental Impact

Bitcoin mining is a very energy-intensive process and therefore has severe environmental impacts. The process is vital to the crypto space as it brings new bitcoins into circulation. The miners also benefit as they get rewarded with some amount of Bitcoin, earning them some good income.

The intensive energy process has raised eyebrows from environmental conservation bodies.

When El Salvador announced its creation of Bitcoin City, some institutions criticized the construction due to the environmental impacts the mining plants would create.

For example, the IMF, World Bank, and the UN through ECLAC showed dissatisfaction with the project due to the negative environmental impacts Bitcoin City’s mining would create.

KenGen is the leading energy production firm in Kenya and feeds energy to about 72% of the Kenyan population. 80% of its energy comes from renewable sources.

With its total energy generation capacity of 1,818MW, 713.13MW comes from geothermal, 825.69MW from Hydro, 253.5MW from thermal, and 25.5MW from the wind.

Bitcoin mining companies approaching KenGen show great concern about the environmental repercussions that crypto mining causes. This has led them to put in measures to produce energy while emitting zero CO2.