International Wax Inc.’s Keating Township facility has been awarded a $1 million pipeline investment grant to support construction of a natural gas pipeline.

Rep. Martin Causer, R-Turtlepoint, and state Sen. Joe Scarnati, R-Brockway, made the announcement.

International Wax is looking to convert its current 4-inch main steam generation system from coal to natural gas at the Keating Township refinery. The project and associated boiler gas conversation project will bring the facility into compliance with the federal Environmental Protection Agency’s Major Source Boiler Maximum Achievable Control Technology (MACT) rule.

“I am extremely pleased to announce that this project in Keating Township is receiving state funding to help come into compliance with EPA mandates, utilize natural gas and maintain over 130 local jobs,” Scarnati said. “I commend IWI and McKean County Commissioners for working together on this endeavor and for receiving this substantial grant.”

Causer noted the cost of the project exceeds the potential savings in energy reduction, so the project is being executed at a financial loss to the company.

“This is an important investment in our community that will help retain more than 130 good-paying jobs and support our local economy,” Causer said. “International Wax is a valued employer, and the grant will allow the company to make necessary upgrades to its facility to comply with federal regulations.”

The project consists of a new 6-inch steel, 8.5-mile natural gas pipeline to be installed within a 35-foot right-of-way running adjacent to State Route 46 and East Valley Road. A permanent interconnect will be constructed at the southern terminus of the line with Tennessee Gas Pipeline Company in Crosby. The total project cost is more than $2.5 million.

The grant was awarded to the McKean County Commissioners by the Commonwealth Financing Authority through its Pipeline Investment Program.