Silverado Green Fuel Inc. announced plans Tuesday to build the first low-rank coal-water fuel facility in the U.S.
The $26 million project, to be located on 14 acres outside of Ackerman in the Red Hills EcoPlex in Mississippi, is designed to utilize the state's supply of low-rank coal reserves by converting them into a new form of coal-based, environmentally friendly, low-cost, alternative fuel.
The facility will create local jobs, inject a sizable capital investment in the local economy, and highlight Mississippi as a national leader in alternative energy and clean coal technologies.
The company has signed a Memorandum of Understanding (MOU) with the State of Mississippi as represented by the Mississippi Development Authority (MDA), Choctaw County Board of Supervisors, and the Choctaw County Economic Development District to build a facility designed to demonstrate the economic feasibility and environmental superiority of converting low-rank coals into a stable liquid fuel that can be used efficiently, while also defining exact parameters for a commercial facility.
Under the terms of the agreement, Choctaw County Economic Development District will provide Silverado with a 14 acre site at their EcoPlex. Choctaw County will clear the site in preparation for construction. The County has also agreed to construct the facility building based on Silverado's specifications. The State, through the MDA will provide for the infrastructure through a series of grants.
Silverado Green Fuel will provide the proprietary technology. The facility is expected to produce 45 permanent jobs and hundreds of temporary jobs during the construction phase. Once this two-year phase is complete, Silverado will be producing 110,000 barrels of fuel per year.
Locally mined lignite coal will be treated through a hydrothermal process at the facility and converted into liquid Green Fuel that can be used in oil-designed boilers, integrated gasification combined cycle (IGCC) power plants, and other advanced combustors.
Nearly half of the world's coal reserves are in the U.S.