Dutch brewer Heineken N.V. announced on Wednesday the opening of a new brewery in Mexico. Located in Meoqui, Chihuahua State, it will be the company’s seventh brewery in the country.

At a cost of $500 million, the plant is said to be the biggest greenfield brewery in Heineken’s history, with a production capacity of 6 million hectoliters per year and will produce leading brands such as Tecate, Dos Equis and the Heineken brand for the Mexican market and for export.

According to the firm, the new brewery is constructed following circular economic principles, with focus on renewable energy and efficient water usage. For instance, the windows in the brewery contain photovoltaic cells that will create approximately 12% of the electricity for the facility with the remainder coming from wind power.

The plant will also have a wastewater treatment plant, which will allow the use of biogas in boilers and reuse treated water for the cleaning of shared facilities and the irrigation of green spaces.

Javier Corral Jurado, Governor of Chihuahua, said: “Heineken’s new brewery in Meoqui will produce significant economic advantage to the area, which will be a reference for the state and an incentive for other industries.”

Jean-François van Boxmeer, CEO of Heineken said: “Mexico is an important market for Heineken. With a developing economy, a rich geographical and demographic diversity and a flourishing beer sector, we see great additional potential here. I am proud that the Meoqui brewery will be one of our biggest and ‘greenest’ breweries showcasing our long-term commitment to the country, the region and the environment.”

The unveiling of the new brewery by Heineken takes competition up a notch in the Mexican beer market between the world’s number one and number two beer companies who dominate the country’s beer market. Grupo Modelo , Mexico’s largest brewer and a subsidiary of Anheuser Busch InBev announced in late November it was constructing a new brewery in central Mexico, which would be the world’s second largest at a cost of $755 million.