The Ministry of Energy and Petroleum of Kenya and Bitcoin (BTC) mining company Marathon Digital (MARA) signed an agreement on Friday to spend over $80 million in the development of Kenya’s energy infrastructure.
According to Marathon CEO Fred Thiel, the partnership’s goals are “monetizing underutilised energy across Kenya and jointly developing technology projects.” The business announced on social media that the money will go towards green data centres.
Marathon also stated in a news release that international investments will be included in the capital, however it did not disclose the sources of funding. “With projected foreign investments expected to exceed $80 million, this venture is poised to deliver economic benefits to the Kenyan economy and generate revenue for the local energy sector ecosystem,” according to the press release.
The collaboration comes after Marathon and the country conducted discussions earlier this month to assist with managing the country’s renewable energy operation and provide guidance on its digital asset regulatory framework. Kenya’s primary energy source, renewable energy accounted for 80% of all electricity generated in 2022 and is expected to reach 100% by the end of the decade.
However, intermittent energy sources—such as solar and wind—don’t generate energy during the majority of the consumption period. Building infrastructure for renewable energy uses a lot of resources and necessitates the use of a power management system in order to store and distribute energy correctly.
Marathon and Kenyan policymakers have reached an understanding to work together to “better understand how to optimise renewable energy projects that produce surplus energy due to intermittency and seasonal variations,” according to the press release. Compared to yesterday’s finish, Marathon shares were up 6% on Friday, closing at about $21, outpacing Bitcoin’s 1% gain in the previous day.