The North American Development Bank (NADB), along with a syndicate of three other lenders, and global renewable energy developer BayWa r.e. signed a credit agreement for up to $216.1 million to finance the design, construction, and operation of the 200 MWAC Corazon Solar Project, located on nearly 2,000 acres of private land in Webb County, Texas. NADB is participating with a $62.9 million loan and served as coordinating lead arranger on the transaction.
During a virtual ceremony, Calixto Mateos-Hanel, NADB Managing Director, and Jam Attari, CEO of BayWa r.e. Solar Projects, LLC signed the loan agreement for NADB’s participation in the project. U.S. Senator John Cornyn and U.S. Representative Henry Cuellar provided remarks and witnessed the signing. Also, present in today’s ceremony was Webb County Judge Tano Tijerina, who discussed the county’s involvement in the project.
The Corazon Solar Project, which is under construction, will increase the installed capacity of renewable energy sources in Texas, thereby reducing future demand on traditional fossil fuel-based energy production and helping prevent the emission of greenhouse gases and other pollutants. The electricity and renewable energy credits generated will be sold to a retail energy solutions provider through a long-term power purchase agreement (PPA), and in the wholesale electricity market.
“We are proud to collaborate on the construction of the Corazon Solar Project located in Webb County, Texas,” said Calixto Mateos-Hanel. “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.”
“This solar farm will be a boon to South Texas and is yet another example of the good work the NADBank does to support Texas projects,” said Senator Cornyn. “I was proud to secure their capital increase in the USMCA and will continue to encourage further investment in Webb County.”
“NADB has been critical in financing infrastructure projects that preserve, protect, and enhance the environment at the U.S.-Mexico border. That’s why I worked hard to double NADB’s capital as well as streamline the process by which projects and funding are approved,” said Congressman Cuellar. “This project will create jobs, bring economic development, and improve the quality of life for our community while reducing pollution and combatting climate change in the process. As a senior member of the House Appropriations Committee, I am committed to funding projects that move us toward a sustainable future, healthier community, and a stronger economy. I want to thank NADB for its dedication to addressing the public health and environmental needs of border communities.”
“We’re pleased to have secured financing from like-minded partners committed to the growth of a more resilient and clean energy future,” said Jam Attari. “Texas continues to be a strong partner for renewable energy growth, and this milestone represents a win for our climate and the economy, creating more opportunities for the local community and the generations to come. At BayWa r.e., we continue to move forward in our promise to drive the energy transition today for a better tomorrow.”
The project will generate an estimated 537.30 gigawatt-hours (GWh) of electricity during the first year of operation, equivalent to the annual consumption of 38,074 households, and reduce approximately 258,338 metric tons/year of carbon dioxide (CO2), 195 metric tons/year of nitrogen oxides (NOx) and 219 metric tons/year of sulfur dioxide (SO2).
In addition to the environmental and health benefits, the project is expected to benefit the communities in and around Webb County through the creation of approximately 1000 jobs during construction and four on-site jobs during operation. To date, NADB has developed and financed 37 clean energy projects, including 20 solar projects.