FRANKFORT – US Fuel Corporation announced plans Tuesday to build its first coal-to-fuel facility near Central City in Muhlenberg County.
The facility is anticipated to produce approximately 8,500 gallons of low-sulfur, high-grade diesel each day from 148 tons of coal.
Rep. Brent Yonts, D-Greenville, said Muhlenberg County is an excellent choice for US Fuel Corporation’s first facility because of the local coal supply and the area’s interest in clean coal alternatives.
“This plant will utilize clean coal technology to provide jobs and hope to our local coal miners and give direction to the rest of the country about other ways coal can be used to provide energy to our nation,” Rep. Yonts said.
The company has been working with industry professionals to develop “performance-guaranteed” coal conversion technology and plans to build multiple facilities in coal-producing areas to convert coal to gasoline, diesel and jet fuel in an eco-friendly manner.
According to company officials, their new approach is scalable, making it more cost efficient than larger coal conversion projects. It’s also less environmentally-risky, they say. Planned US Fuel facilities meet all emission standards and produce almost no carbon dioxide and wastewater discharge.
The project is being funded by the Global Private Funding Business Incubation Program.