El Salvador just announced their first major initiative for "Volcano Energy."

Here's what it means and what you can expect.

An overview 🧵🧵🧵

Before we get into specifics, let's go high level stats.

- 241MW Total Renewables

- 169MW of Solar

- 72MW of Wind

- Projected 1.3EH/s Hash Power.

- $1bn Committed with $250mm in hand.

- 23% gov't owned.

- 27% investor owned.

- 50% reinvested in energy production (good).

Overall, this is a large international deal with multiple stakeholders.

It's positive, for the sake of alignment, that this is EQUITY and not DEBT based.

It also appears that maybe 1 sustainable energy manufacturer is involved as an investor? (if that's "collaboration")

Ok, let's get specific now.

Working backwards (conservatively):

- 1.3EH/s would be 1.3mm TH

- That's 13,000, 100T Machines

- Assuming 250 machine per MW

- That's 52MW of power.

Wait.... I thought they were building 241MW?!

They are... but all power generation is constrained by 'capacity factor', that is, the amount of ACTUAL power generated, when compared to the NAMEPLATE power built out.

Below are capacity factors based on generation TYPE.

Wind and solar are low, so you overbuild capacity.

Also, large generation gives you the option to sell energy to your neighbors...

Where exactly is this build out supposed to be located?

El Shiste in Metapan?

Apparently it is ideally located for wind and solar yield.

Also though...

El Shiste is located on the border with Guatemala and equidistant to two major cities...

I wonder who would also be interested in buying some energy?

🤔🤔🤔

Ok, but what about the VOLCANO ENERGY?!

Read closely: "we are constructing a pathway to our geothermal future within the volcanic region."

Translation: This is the first energy deal we're assembling and it will help prove out and fund volcano energy in the long run.

It will be interesting to see how this deployment unfolds.

Location is inland (good) at solid altitude (1,540ft), with moderate rainfalls and seasonal temps.

Koppen Classification for the region is Aw, or a Tropical Savanna Climate.

This means relatively stable seasonal temps (22-25C Average year round).

The biggest risk to machines IMO are humidity and seasonal rains.

Overall I'm excited to see how this initiative takes shape and am glad El Salvador is making the leap into hashing at scale.

There is a LOT to be put together to make it happen, but it seems they have a solid foundation in place.

Now it's time to see what they build.

END 🧵