The private company, Silverado, signed an agreement with the state of Mississippi and Choctaw County officials to produce what's called "green fuel".

It looks like oil, but it's called green fuel. Its developer says it's an affordable, environmentally friendly alternative to crude oil, and Mississippi will be the hub.

"It will satisfy the needs for energy not only in Mississippi. It will spread throughout the world. This will be the beginning place," said Garry Anselmo, president and CEO.

Anselmo agreed in writing to build the new research and commercial plant in the Red Hills Ecoplex in rural Choctaw County. The liquefied fuel will be made from lignite coal that's already being mined nearby.

"Certainly the lignite that's there in Choctaw County is a great example of opportunities we have in this state to be an energy efficient state," said Gray Swoope of the Mississippi Development Authority.

The liquidized coal burns cleaner than regular coal and could eventually reduce American reliance on foreign energy, while boosting Mississippi's economy.

Silverado says the plant will create at least 45 jobs for 10 years in Choctaw County. The company has also agreed to invest at least $26 million into the county over a 3-year period.

"This is a sound investment for the people of Mississippi. And we just say welcome y'all," said Anselmo.

A groundbreaking in Choctaw County is planned next month. The plant should be operating within the year. It was originally planned in Alaska. The company began talks with Mississippi a year and a half ago.