GILLETTE (WNE) — Ground will break soon on a new coal refinery demonstration project north of Gillette.

The University of Wyoming School of Energy Resources, Atlas Carbon and Wood PLC will hold a groundbreaking ceremony in September to launch the project near Atlas Carbon.

The site will be developed and operated collaboratively by the three stakeholders, with the goal of showcasing and developing — at a pre-commercial scale — a sustainable coal refinery process, as well as product technologies using coal from the Powder River Basin.

“Even as we work to protect the existing markets, it is encouraging to see the SER-led team innovate a process that could unlock new markets for Wyoming coal and support the diversification of the economy,” said Randall Luthi, chief energy advisor to the governor, in a press release.

Once fully operational as a demonstration site, the facility will showcase the possibilities of PRB coal to potential industry and commercial stakeholders.

“The main focus of this project is to create new markets for Wyoming coal,” said Richard Horner, the school’s senior adviser to UW’s Center for Carbon Capture and Conversion. “Diversifying the use of coal will create new jobs and new opportunities for coal communities, as well as create new manufacturing and conversion industries that can drive economic growth. We are thrilled that Atlas Carbon and Wood have agreed to be stakeholders in this venture.”

“The manufacturing plant is located near the Wyoming Innovation Center and has the ability and capacity to convert carbon into products, making it an ideal location for a field demonstration,” said Atlas Carbon CEO and chairman Frank Levy.