Blue Pony Energy selects Lovington for clean fuels manufacturing facility

State Agency Press Release – From the New Mexico Economic Development and Environment Departments

$1.6B facility to create 107 jobs, $4.6B in economic impact

LOVINGTON, N.M. — Houston-based Blue Pony Energy, a chemical manufacturing company specializing in synthetic, low-carbon products, will build its first facility in Lovington, New Mexico.

The company projects it will hire 90 New Mexicans over the next ten years and leverage approximately 221 in direct and indirect jobs. The New Mexico Economic Development Department (EDD) estimates an economic impact of over $4.6 billion to the state over the next ten years.

“New Mexico is leading the nation as a place for advanced energy companies to build in,” said Gov. Michelle Lujan Grisham. “With our robust infrastructure, competitive incentives and benefits for employees and their families, we will continue to attract exciting companies like Blue Pony to the Land of Enchantment.”

“New Mexico’s focus on innovation and accessible infrastructure makes us uniquely attractive to forward-thinking companies like Blue Pony,” said EDD Cabinet Secretary Rob Black. “This project will leverage increased economic opportunity for our state that will extend well beyond the immediate impact.”

The company aims to produce low-carbon products for the evolving energy landscape. The advanced energy industry is one of New Mexico’s target industries for growth, as set forth by Governor Michelle Lujan Grisham and detailed in EDD’s State Plan.

Companies like Blue Pony are moving New Mexico closer to meeting the state’s goal of cutting climate pollution 45% by 2030 and achieving net-zero emissions by 2050.

Blue Pony’s $1.6 billion facility in the Lovington Industrial Park will convert natural gas into synthetic fuels and specialty products with significant reductions in carbon intensity.

The company engaged in discussions and discovery with state and local government agencies over the past year, prior to selecting this site.

A key draw for Blue Pony to the Lovington location was a dynamic business environment, favorable infrastructure and an alignment of interests in sustainability, environmental stewardship and clean energy development with the state.

“Southeast New Mexico is an ideal region to deploy advanced technologies proven to be commercially viable and capable of progressing our shared clean energy objectives,” said Justin Rencurel, chief executive officer at Blue Pony Energy. 

“Blue Pony is the perfect fit for New Mexico as our state becomes a hotbed of the rapidly evolving clean fuels industry,” said Environment Secretary James Kenney. “The company’s investment in New Mexico ensures a cleaner, healthier future for generations of New Mexicans to come.”

“As the latest in a growing list of advanced and clean energy companies to set up shop in New Mexico, Blue Pony coming to Lovington is a clear demonstration that our efforts to attract sustainable businesses and good jobs to our state are paying off,” said Rep. Nathan Small (D-Las Cruces).

“New Mexico does not have to choose between our climate and our economy. We can, and we must, lower our carbon footprint, while growing our economy and creating more opportunities for our workforce.”

“The City of Lovington and the Lovington Economic Development Corporation are excited that the efforts of the past 12 months have resulted in Blue Pony choosing Lovington as their home,” said Lovington Mayor Howard Roberts.

Blue Pony is eligible for up to $2 million in state Local Economic Development Act (LEDA) funds, with dollars distributed as the company meets construction and hiring benchmarks. Pending final approval, the City of Lovington, acting as the fiscal agent, will commit additional local LEDA funds to the project.

Collaboration was essential to New Mexico’s selection, which was also driven by efforts from the Lovington Economic Development Corporation.

“This clean energy project will be a catalyst for long-term growth,” said Evelyn C. Holguin, executive director of the Lovington Economic Development Corp. “It will create quality jobs, increase local investment, expand our tax base and strengthen the overall economic vitality of Lovington.”