Marathon Digital Partners with Kenya to Boost Renewable Energy Sector
Marathon Digital Holdings, Inc., a leading Bitcoin mining company, has entered into a strategic partnership with Kenya’s Ministry of Energy and Petroleum (MOEP) to enhance the country’s renewable energy sector. This collaboration marks a significant step for Marathon as it seeks to diversify its operations and support sustainable energy initiatives globally.
Under the terms of the agreement, Marathon and MOEP will exchange policy, scientific, and technical information, alongside project investment expertise, to optimize renewable energy projects. This partnership aims to address the intermittency and seasonal variations in energy production, which often result in surplus energy. To facilitate these efforts, a Joint Steering Committee will be established, comprising senior officials from both Marathon and MOEP.
Marathon has committed over $80 million in projected foreign investments to this venture. These investments are expected to deliver substantial economic benefits to Kenya’s economy and generate revenue for the local energy sector ecosystem. The funds will primarily focus on building green data centers and other energy-related infrastructure projects.
Fred Thiel, Chairman and CEO of Marathon Digital, emphasized the importance of this partnership, stating, “This agreement with the Ministry of Energy and Petroleum is a pivotal moment for our business as it provides us with a clear framework to pursue opportunities across the Republic of Kenya. It demonstrates the innovative approach that Kenya is taking to optimize their energy usage and to enhance their technological infrastructure.”
Marathon’s Managing Director for the EMEA region, Manoj Narender Madnani, echoed this sentiment, highlighting that this collaboration marks the company’s first direct partnership with a government to enhance energy infrastructure. He noted that this partnership is integral to Marathon’s strategy to scale its international business.
Kenya’s renewable energy sector is already robust, with more than 80% of the country’s electricity generated from renewable sources such as wind, solar, hydroelectric power, and geothermal energy. Geothermal energy, in particular, contributes the largest share to the country’s electrical infrastructure. The International Trade Administration (ITA) identifies Kenya as one of the world’s lowest-cost geothermal energy producers and a prime candidate for solar energy generation due to its abundant sunlight.
Despite Kenya’s cautious stance towards cryptocurrency and blockchain projects, as evidenced by its recent ban on Worldcoin due to privacy and security concerns, the partnership with Marathon Digital signifies a strategic shift. It indicates Kenya’s willingness to explore innovative solutions to optimize its energy infrastructure while leveraging digital asset technology.
The collaboration is also aimed at monetizing underutilized energy in Kenya. Renewable energy sources like solar and wind are intermittent, meaning they do not always produce energy when demand is high. By working together, Marathon and Kenyan policymakers plan to develop technology projects that can better manage these fluctuations and ensure a stable energy supply.
Marathon’s involvement in Kenya follows its successful operations in the UAE and Paraguay. This new venture reinforces Marathon’s commitment to supporting sustainable energy projects worldwide and aligns with its broader strategy to diversify its operations across different regions.
