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Aug 4, 2005 1:06 PM

Financing for the nation's first clean coal-to-liquid fuel plant has been approved by the Senate in the energy bill now under consideration by Congress.

"I am pleased this technology has the added benefit of producing environmentally friendly, ultra clean, zero-sulfur diesel fuel from waste coal," said Sen Rick Santorum (R-Pa).

The proposal allows a portion of funds already appropriated to the Department of Energy and awarded to WMPI PTY LLC, a coal and energy company based in Schuylkill County PA, through a Clean Coal Power Initiative competitive grant to be used to fund a federal loan guarantee for WMPI's coal-to-diesel project.

The Fischer-Tropsch technology project, which turns waste coal into high quality zero-sulfur diesel fuel, will be the first coal-to-liquid fuel project in the United States.