JACKSON, Miss. (AP) - A company that will produce a crude oil substitute from biomass plans to build its first three facilities in Mississippi.
Gov. Haley Barbour announced details Thursday of the project proposed by KiOR, based in Pasadena, Texas.
KiOR President and CEO Fred Cannon says his company will become first to commercially produce biofuel through the catalytic conversion technology. The plants will be in the city of Columbus and Franklin and Newton counties, areas with large timber supplies.
Barbour has called a special session Friday for lawmakers to approve incentives for the project. Those incentives include a $75 million loan.
Barbour says the company won't receive any state subsidies until it has signed a contract with a major oil company. Cannon says KiOR is in final negotiations with two refineries.
Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.