Chilean environmental authorities on Thursday approved the construction of Latin America's largest solar powered desalination plant, with an estimated initial investment of 500 million U.S. dollars.

The "Energy and Water of the Pacific" (Enapac) plant will be able to desalinate 2,630 liters of water per second once built, said the Chilean constructors, TRENDS Industrial.

The new plant will be built in the Atacama region, located in the Atacama Desert, one of the most arid places in the world.

"Our vision is that many users can access a sustainable source of water ceasing the use of continental waters and basins of the region, which are under severe water stress," said Rodrigo Silva, the CEO of TRENDS Industrial.

The Enapac project will be one of the "most advanced projects in the world with a combination of reverse osmosis desalination and photovoltaic energy," said TRENDS Industrial in a statement.

Atacama governor Francisco Sanchez welcomed the decision, saying the plant will be built according to the highest environmental and quality standards, with respect for the environment and local communities.