Kenya and Marathon Digital Holdings partner to transform untapped geothermal energy into economic gains through Bitcoin mining.
Kenya has signed an agreement with Marathon Digital Holdings, a leading Bitcoin miner, to harness its abundant yet underutilized energy resources. This partnership aims to utilize the country's surplus geothermal energy capacity for Bitcoin mining and further technological development.
Marathon Digital partners with Kenya to harness underutilized energy for #Bitcoin mining, investing $80 million in digital infrastructure. pic.twitter.com/jCQhQqm9fn
— TFTC (@TFTC21) May 24, 2024
The collaboration was initiated earlier this month, with Kenya's President William Ruto revealing that consultations were taking place with both the National Treasury and Ministry of Energy. The goal is to monetize the country's excess energy through Bitcoin mining.
Kenya's geothermal power production places it among the top producers in Africa. However, a substantial portion of this energy has not been utilized. The deal with Marathon Digital Holdings aims to convert this surplus into a valuable economic asset, while also undertaking joint development of technology projects that could enhance Kenya's infrastructure.
President Ruto expressed optimism about the benefits of the partnership, suggesting that by using excess energy efficiently, Kenya can strengthen its economy, create jobs, and become a leader in sustainable energy and technology.
A press release from Marathon Digital Holdings detailed the agreement with the Ministry of Energy and Petroleum of Kenya (MOEP). It highlighted the mutual exchange of information and expertise to optimize renewable energy projects and manage energy production variability. The establishment of a Joint Steering Committee, staffed by senior officials from MOEP and Marathon, will oversee the development and implementation of energy projects.
The expected foreign investments through this partnership could surpass $80 million, which promises significant economic advantages for Kenya and revenue generation for its local energy sector.
"This agreement with the Ministry of Energy and Petroleum is a pivotal moment for our business," said Fred Thiel, emphasizing the innovative approach Kenya is taking. Marathon's managing director of the EMEA region, Manoj Narender Madnani, remarked on this being the first direct collaboration with a government for improving energy infrastructure.
The agreement was formally signed at the US Chamber of Commerce on May 24, 2024, by Fred Thiel and Kenya's Prime Cabinet Secretary, Hon. Musalia Mudavadi, E.G.H.
