Phoenix Energy will invest $5 million in a facility in Sedona, Arizona, to develop an emissions testing lab that will test for and detect pollutants.
The company, owned by Phoenix Capital Group, has already tested its equipment at two sites in Arizona, including one in the Tucson area.
The company is looking to expand to a third location in Sedons southern desert.
Phoenix Energy said the development will increase its footprint in the Phoenix area by expanding its manufacturing operations, while expanding its testing infrastructure.
The facility will allow Phoenix Energy to expand its operations and test equipment in a city that is home to more than half of the world’s coal mines and is home of one of the nation’s largest coal power plants.
The facility is expected to be operational by the end of 2020, Phoenix Energy said.
The Arizona legislature has not approved any funds for a new state coal plant, but there are some money incentives available to help the state generate more energy and reduce pollution.
The federal government has not given approval to a new coal plant in Arizona.
It will be up to state regulators to decide how to proceed with a new facility.