Harnessing Heat: Geothermal Energy Powers Bitcoin Mining in South America

With emerging technologies and techniques, the vast reserves of deep underground heat can be harnessed as a constant, reliable source of electricity around the world, and South America is taking the lead in innovative applications of this energy.

The geothermal energy sector has been a steadfast provider of clean, baseload electricity globally for over a century. Despite its proven track record, with 16 GW of installed capacity worldwide, geothermal energy only accounts for 0.5% of the world's total installed renewable electricity capacity. This limited penetration is largely due to the geographical constraints of geothermal energy, which requires specific underground conditions—a combination of heat, water, and porosity.

The technology required to access this energy source involves tapping into the heat emanating from sedimentary and volcanic rocks located at depths of up to 3 km beneath the Earth's crust, where temperatures can reach up to 250°C.

However, what if wells were drilled deeper and better to tap into even hotter and more conductive rocks?

Alejandro Solé, Chief Investment Officer at TechEnergy Ventures, from Tecpetrol’s energy transition division, discussed this issue and the challenges involved at CERAWeek, an energy conference in Houston.

“The discussion today is about the next step, it’s about progress, it’s about terawatts, it’s about having a massive impact on the decarbonization of the world,” he said. “Geothermal 2.0 is the opportunity to reach higher temperatures, lower the cost, enter factory mode, and deliver highly competitive costs. Geothermal 3.0 is how we get to 500 degrees, how we reach supercritical depths, and how we start developing wells that have 50 MW per well.”

The potential is indeed enormous. At 10 km below ground, supercritical steam of 500°C is accessible in 70% of the Earth's crust, while at 20 km down, it’s ubiquitous. Harnessing this would transform geothermal energy from a niche player into a major provider of reliable, clean energy, currently constrained by the location of shallower heat sources in more permeable rocks.

South America is already leading the way in using geothermal energy for innovative purposes. El Salvador, the first country to adopt Bitcoin as legal tender, has reportedly added 473.5 BTC to its treasury using geothermal energy. Official data released by The Bitcoin Office of El Salvador (ONBTC) disclosed that this number of Bitcoin was mined since 2021 using 1.5 MW of power from the Tecapa volcanic complex. The Bitcoin was harvested by 300 miners in the Berlin geothermal plant using the energy provided by the Tecapa volcanic complex. These cryptocurrencies are part of the over 5,750 BTC that El Salvador currently holds in its public treasury address, disclosed by President Nayib Bukele earlier this year.

Similarly, Tecpetrol in Argentina aims to reduce environmental impact by avoiding gas emissions and generating additional profits. The Argentinian oil company plans to start mining cryptocurrency using leftover gas power. Tecpetrol will launch its first gas-powered crypto mining facility in the Los Toldos II Este region, located north of Vaca Muerta in Argentine Patagonia. This approach allows Tecpetrol to advance its crude oil production project while optimizing gas utilization and reducing waste.

By leveraging deeper geothermal wells and innovative uses of byproduct energy, the geothermal sector is poised to play a crucial role in the global transition to renewable energy. As we push technological boundaries and reduce costs, geothermal energy could become a cornerstone of a green, sustainable future, with South America at the forefront of this revolution.

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