A Wisconsin-based company that produces pellets for renewable fuel is set to expand with a new location in Eastern Iowa.

The Iowa Economic Development Authority announced that it has awarded incentives from the state to Convergen Energy, according to the Cedar Rapids Gazette. Those incentives will be used to create jobs at its new location to be built in Fairfax. That will be the site of a new 10,000-square-foot production facility. Company officials say that the new building will "better position the company to reach new and existing customers throughout the region" according to the Gazette. The total investment of the project is said to be in excess of $18 million.

Convergen was founded in 2009 and produces pellets that are used in solid fuel and steam generation facilities, according to the Gazette. They take non-recyclable paper, labels, and other packaging materials that would have instead ended up in a landfill and turn them into pellets that can be burned in fuel boilers. The company has been working with the University of Iowa for years, providing them with pellets that are burned at the University of Iowa Power Plant.

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The Gazette reports that the Fairfax city council voted earlier this month to provide economic development to Convergen Energy. City officials say they plan to annex land for the Convergen plant along Lefebure Road, south of Travero Logistics. Once completed, the new production facility will add 23 new jobs to the area. 11 positions will be incented through the state's High-Quality Jobs program.

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