Pennsylvania ’s governor has announced that the nation’s first coal-to-diesel plant will be built in his state.

Coal-to-diesel is a process that involves heating crushed coal to a gaseous state, then liquefying it into fuel.

Gov. Edward Rendell said in a statement that the privately-operated, $612 million plant will employ 1,600 people and produce 40 million gallons of cheaper, cleaner diesel fuel per year.

Construction on the plant will begin in the spring in Mahoney Township , about 50 miles north of Harrisburg .

Anna Gomez, of the state’s Department of Environmental Protection, told “Land Line Now” that the project will rely on waste coal that’s presently piled all over the state.

The Associated Press reported that the plant will be built by Waste Management and Processors Inc., a Gilbert, PA, company that’s receiving $47 million in tax credits from the state as well as $100 million in federal grants.