LINCOLN, Neb. (AP) — Nebraska is exploring the processing of agricultural waste into a coal-like substance that would be used as a renewable fuel.

The state awarded a Mexico, Missouri, company a grant of more than $250,000. The company, Enginuity Worldwide, says it can compress cow manure, spent cornstalks and other plant material into what it calls BioCoal. The company says the product burns like regular coal and could help power plants cut carbon emissions if the plants were to replace some of its coal with BioCoal.

Enginuity President Nancy Heimann says that burning the product would release no more carbon than if the plant material it’s made from were to decompose in a field.