A six pound block of coal can produce about one gallon of diesel fuel in 16 to 20 seconds, with less than 1 part of sulfur per million, which is exactly what Kentucky Fuel Associates Inc. intends do with its recent injection of more than a half a million dollars.
Today the company announced the Muhlenberg Fiscal Court has granted more than half a million dollars to develop the first large scale, coal-to-diesel fuel conversion plant in the country. The first plant will be built in Muhlenberg County, and is expected to produce 70 million gallons of diesel fuel from coal each year.
Muhlenberg County has designated $625,000 from its Coal Severance Allotment Program to fund the joint partnership between Kentucky Fuel and Fuel Frontiers Inc., a wholly-owned subsidiary of Nuclear Solutions Inc. (OTCBB: NSOL).
The investment will allow Kentucky Fuel and Fuel Frontiers to continue plans to develop up to eight plants in the State of Kentucky, creating 300 jobs to complete the facility, and employment for 80 workers when the plant officially opens in 2011. Additionally, Kentucky Fuel may receive up to $2.5 million in State grant money and $2.5 million for a second plant site under the Kentucky Science and Technology Corp.
The two “coal to liquid” plants to be built by Kentucky Fuel and Fuel Frontiers will be located in western Kentucky to produce clean fuel with very low greenhouse gas emissions. When operated at full capacity, the facilities could consume up to 500,000 tons of Kentucky coal each year.
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