The North American Development Bank announced Wednesday the award of a $62.9 million loan to the Corazon Solar project in Webb County, a 200 megawatt solar farm under construction on 2,000 acres of a private ranch east of Laredo.

The developer, BayWa r.e., also signed a credit agreement for up to $216.1 million to finance the design, construction and operation of the project.

During a virtual signing of the loan agreement on Wednesday, both Sen. John Cornyn and Laredo’s Rep. Henry Cuellar touted this solar farm as an emission-free, renewable energy provider for the state.

“Our state produces the most wind power of any state in the country, about 17% of our electricity generation. But there’s room to increase output from other renewable energy sources, especially solar. We’ve got plenty of sun,” Cornyn said.

Cuellar commented that there is enough sun in Webb County to power this solar farm almost every day of the year. He also told Webb County Judge Tano Tijerina that this will go down as one of his biggest projects.

In December, Webb County Commissioners Court voted unanimously to enter into a 10-year tax abatement agreement with Corazon Solar LLC. The agreement will abate 35% of the taxes on any increased value to Corazon’s property after they begin construction. The county will keep 65% of that new revenue.

However, the agreement stipulates that Corazon will not actually make tax payments to the county based on their property value. They are instead making payments in lieu of taxes: $1,200 per megawatt capacity for year. Since this is a 200 megawatt facility, that will be $240,000 a year for 10 years.

Tijerina said that everyone has their own opinions on tax abatements, but that to him this agreement was worth it. What would have remained empty ranch land will now be an economic boost for the area and create revenue for the county, he said.

During its first year of operation, the NAD Bank expects the project to generate 537.3 gigawatt-hours of electricity — enough to power over 38,000 average American homes for a year.

This is expected to displace carbon dioxide by about 258,338 metric tons per year, nitrogen oxides by 195 metric tons per year and sulfur dioxide by 219 metric tons per year, according to the NAD Bank’s report.

The electricity and renewable energy credits generated will be sold to a retail energy solutions provider through a long-term power purchase agreement, and in the wholesale electricity market, according to the NAD Bank.

NAD Bank Managing Director Calixto Mateos-Hanel said the bank was proud to collaborate on the construction of this solar farm.

“This solar project will help contribute to what is projected to be the fastest-growing form of power generation in Texas over the next three years, while also fighting climate change,” he said.

Construction of the Corazon Solar project began last July and is expected to be substantially complete by June. The project is located on 9,000 acres of land located north of U.S. Highway 59 and owned by the Guillermo Benavides family.

There are 1,248 workers constructing this project, about half of whom are Webb County residents, according to Jam Attari, CEO of BayWa r.e. Solar Projects.

BayWa r.e. has also brought employees from the restaurant Las Kekas to make breakfast and lunch every day for the crew, Attari said.

When construction is complete, there will be four on-site jobs at Corazon Solar.