The new grant will allow Accelergy and its partners to demonstrate their fully integrated process for converting coal to liquids, and inform plans to develop commercial-scale facilities in the state.

The facility will produce and test several types of non-petroleum fuel, including gasoline, diesel and jet fuel, and feature a carbon dioxide capture and recycle process utilizing algae to convert the carbon dioxide into additional liquid fuels and a bio-fertilizer.

Energy Strategy Environment will be responsible for bringing together the technologies and business partners for the algae based carbon capture and recycle components of the project.

Earlier, Accelergy was awarded a $175,000 grant to conduct a feasibility study and determine the facility’s location.