Appalachian Biofuels LLC is planning to establish its headquarters and biodiesel production facility in Russell County, creating 40 jobs.
Gov. Terry McAuliffe says the company will invest $3.5 million for the project. Virginia successfully competed against South Carolina for the project.
Appalachian Biofuels will process multiple waste feedstock material and refine it to produce biodiesel.
McAuliffe approved a $200,000 grant from the Governor's Opportunity Fund for the project. The Virginia Tobacco Indemnification and Community Revitalization Commission approved $210,000 in funding for the project
The company also qualifies for rail access funding from the Virginia Department of Rail and Public Transportation, and will also be eligible for sales and use tax exemptions on equipment.