U.S. Fuel Corporation plans to build a $76 million Coal-to-Liquid manufacturing facility on a 121-acre site in Muhlenberg County, Kentucky, creating 50 jobs.
The company estimates its first plant, located on a reclaimed coal field near an active mining operation, will operate on a continuous basis and produce upwards of 8,500 gallons of diesel fuel from every 148 tons of coal processed.
Harry Bagot, President and CEO, said that he and company officials selected Muhlenberg County for this investment due to a number of critical factors, including its excellent coal resources, enthusiastic support of the community and hard work of the Muhlenberg Alliance for Progress.
State Representative Brent Yonts said that he was extremely pleased that U.S. Fuel Corporation selected Muhlenberg County as the location for its first CTL investment. He stressed that this plant will utilize clean coal technology and provide jobs to local coal miners. It will also provide direction to the rest of the country about other ways coal can be used to provide energy for our nation.
This investment by U.S. Fuel helps to protect our long coal-mining heritage in Western Kentucky, and will go a long way to promote the jobs and investment so desperately needed in Muhlenberg County and this vital part of the Commonwealth, said State Senator Jerry Rhoads.
Ken Robinson, President and CEO of the Muhlenberg Alliance for Progress said the selection of Muhlenberg County by U.S. Fuel demonstrates that this Kentucky county is an excellent location for business development and possesses the resources, human capital and strategic location necessary to justify this significant investment by a private sector company.
While information on incentives provided the firm were not immediately available, Kentucky offers tax credits for the production of biofuels as well as the construction and upgrades of biofuel facilities.