The go-ahead came from the New Mexico Land Office last week.
According to published reports, most notably in the Associated Press, the approval includes the right to lease 34,000 acres (roughly 14,000 hectares) of state trust land for the El Cabo project in Torrance County.
Once built out over an anticipated period of 10 years, and connected to the grid, the project is expected to produce enough power for some 400,000 local households.
Government officials in New Mexico said the project is a big economic win for the state, and could bring as much as $40 million (€30 million) in income into the state for the next 45years.
Construction of the first, 300 MW phase is expected to begin before the end of the year.
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