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Bolivia Turns to Cryptocurrency for Energy Imports Amid Dollar and Fuel Shortages

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Bolivia’s state-run energy company YPFB has announced plans to use cryptocurrency to pay for energy imports, as the country grapples with a severe shortage of dollars and fuel. This move comes amid a significant decline in Bolivia’s foreign currency reserves, which has been exacerbated by years of decreasing exports of natural gas. The fuel crisis has led to long lines at gas stations and sporadic protests across the country.

A spokesperson for YPFB confirmed that the company has received government approval to implement a digital asset payment system to help meet the country’s growing fuel demands. “From now on, these cryptocurrency transactions will be carried out,” the spokesperson said, explaining that the initiative aims to support Bolivia’s national fuel subsidies, which are under strain due to the shortage of hard currency.

Although YPFB has not yet begun using digital currency for energy imports, it plans to do so in the near future. Bolivia, once a net energy exporter thanks to its large natural gas reserves, has seen its reliance on energy imports increase as domestic gas production has declined due to a lack of significant new gas discoveries.

Energy Transfer Signs Long-Term Natural Gas Supply Deal with CloudBurst

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Energy Transfer (ET.N), a leading U.S. pipeline operator, announced a long-term natural gas supply agreement with CloudBurst Data Centers, a private company based in Denver. This deal focuses on supporting the development of CloudBurst’s data center in Central Texas. Shares of Energy Transfer rose by 2.1% following the announcement.

As power demands from AI continue to rise and grid infrastructure advances slowly, many data centers are seeking more direct energy sources, bypassing traditional utilities. This shift is expected to significantly increase natural gas consumption in the coming years.

Under the agreement, Energy Transfer will supply up to 450,000 million British thermal units (MMBtu) of firm natural gas daily through its Oasis Pipeline to CloudBurst’s campus near San Marcos, Texas. The supply is contingent upon CloudBurst making a final investment decision (FID) with its customer. The natural gas will be used to generate nearly 1.2 gigawatts of electric power for the data center’s operations, with the supply set to continue for at least 10 years starting with Phase 1 of the project.

This agreement marks Energy Transfer’s first commercial arrangement to directly supply natural gas to a data center. RBC Capital Markets analyst Elvira Scotto viewed the deal as a promising step for midstream companies looking to expand into the AI and data center sectors.

CloudBurst is expected to make its FID later this year, with the facility potentially becoming operational by the third quarter of 2026.

Geothermal Startups See Growth as AI Demand Rises but Face Rivalry from Natural Gas

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Geothermal energy is gaining traction as a sustainable solution to power the energy-hungry AI data centers of major tech companies like Meta and Google. However, the path forward remains uncertain due to stiff competition from natural gas and the high upfront costs of geothermal projects.

The Rise of Geothermal for AI Energy Needs

Big Tech firms are partnering with geothermal startups to supply clean energy for their data centers. These partnerships are part of a broader push to meet the growing energy demands of AI technologies while accelerating investments in renewable energy.

Trey Lowe, Chief Technology Officer of Devon Energy, a shale gas producer and investor in geothermal startup Fervo Energy, highlights the potential: “We believe geothermal, along with abundant natural gas, can be part of the all-of-the-above energy mix we need to meet the demand.”

Geothermal energy offers advantages such as faster carbon-free electricity generation compared to nuclear energy and reliability over intermittent sources like wind and solar. Despite these benefits, challenges like high drilling costs and lengthy project approvals have tempered initial enthusiasm.

Investments and Industry Shifts

Since 2020, geothermal projects have attracted an estimated $700 million in funding. While startups like Sage Geosystems and Gradient Geothermal are pushing forward with innovative approaches, larger oil majors like Chevron and Exxon Mobil remain focused on natural gas, often coupled with carbon sequestration to lower emissions.

Sage Geosystems, for instance, recently raised $30 million and is planning a Series B funding round in January. Gradient Geothermal is leveraging existing oil and gas infrastructure to generate geothermal energy, a cost-effective strategy gaining interest among mid-sized energy firms.

Geothermal energy’s cost competitiveness is a key factor driving its appeal. The average levelized cost of electricity (LCOE) for geothermal projects in the U.S. stands at $64 per megawatt-hour (MWh), lower than combined-cycle natural gas ($77/MWh) and significantly cheaper than nuclear energy ($182/MWh).

The Texas Geothermal Boom

Texas is emerging as a hub for geothermal development, thanks to its abundant resources, streamlined permitting process, and regulatory certainty. Ten of the 22 geothermal startups launched in the U.S. between 2016 and 2022 are headquartered in Texas.

According to Matt Welch of the Texas Geothermal Energy Alliance, “Texas is becoming the ‘place to be’ for geothermal exploration and development across the board.”

Legislative and Market Support

Lower commodity prices are pushing shale companies to diversify revenue streams, with geothermal becoming a viable option. Bipartisan legislative interest, such as the recently passed CLEAN Act and HEATS Act, could further simplify the process of setting up geothermal projects in the U.S., boosting the sector’s growth.

Trey Lowe of Devon Energy notes that government incentives and the stability of geothermal investments are attracting more private capital: “A combination of a low decline asset with high certainty on pricing piques the interest of many investors.”

Challenges and Outlook

While geothermal energy has significant potential, its growth is clouded by competition from natural gas and the reluctance of major oil companies to commit fully. For geothermal to become a cornerstone of the energy mix, continued investment, innovation, and supportive policy frameworks will be essential.