Project Expected to Generate 100+ Jobs and $4.6B in Economic Impact
LOVINGTON, N.M. — Blue Pony Energy, a Houston-based chemical manufacturing company focused on synthetic, low-carbon products, has selected Lovington, New Mexico, as the site for its first manufacturing facility. The company plans to invest $1.6 billion in a large-scale clean fuels production plant at the Lovington Industrial Park, reinforcing New Mexico’s growing reputation as a hub for advanced energy development.
The project is expected to create 107 jobs, including an estimated 90 direct hires over the next decade, while supporting approximately 221 direct and indirect jobs. According to the New Mexico Economic Development Department (EDD), the facility could deliver an estimated $4.6 billion in economic impact statewide over ten years.
Blue Pony Energy’s facility will convert natural gas into synthetic fuels and specialty products with significantly reduced carbon intensity, supporting the transition to lower-carbon energy solutions.
Strengthening New Mexico’s Advanced Energy Sector
State leaders emphasized the project’s alignment with New Mexico’s strategy to grow its advanced energy and clean fuels industries.
“New Mexico is leading the nation as a place for advanced energy companies to build,” said Governor Michelle Lujan Grisham. “With robust infrastructure, competitive incentives and strong benefits for employees and families, we continue to attract innovative companies like Blue Pony to the Land of Enchantment.”
EDD Cabinet Secretary Rob Black noted that the state’s focus on innovation and infrastructure readiness is helping draw forward-looking investment.
“New Mexico’s emphasis on innovation and accessible infrastructure makes us uniquely attractive to companies like Blue Pony,” Black said. “This project will generate economic opportunity that extends well beyond the immediate impact.”
The advanced energy sector remains a priority target industry in EDD’s statewide economic development plan. Projects like Blue Pony’s also support New Mexico’s broader climate goals, including reducing climate pollution 45% by 2030 and achieving net-zero emissions by 2050.
Site Selection Driven by Infrastructure and Sustainability Alignment
Blue Pony engaged in site discussions with state and local partners for more than a year before selecting Lovington. Company leadership cited business climate, infrastructure capacity and alignment with sustainability goals as key drivers in the decision.
“Southeast New Mexico is an ideal region to deploy advanced technologies that are commercially viable and capable of progressing shared clean energy objectives,” said Justin Rencurel, CEO of Blue Pony Energy.
Environment Secretary James Kenney added that the project supports both economic and environmental priorities.
“Blue Pony’s investment helps ensure a cleaner, healthier future for New Mexicans while supporting high-quality job creation,” Kenney said.
State Representative Nathan Small emphasized that the project demonstrates the compatibility of climate action and economic growth.
“New Mexico does not have to choose between our climate and our economy,” Small said. “We can lower our carbon footprint while growing our economy and creating opportunities for our workforce.”
Local and State Incentive Support
Blue Pony Energy is eligible for up to $2 million in state Local Economic Development Act (LEDA) funds, distributed as the company meets construction and hiring benchmarks. Pending final approvals, the City of Lovington — serving as fiscal agent — plans to commit additional local LEDA support.
Local collaboration played a critical role in the project’s recruitment. The Lovington Economic Development Corporation worked alongside state partners to advance the opportunity.
“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.
Evelyn C. Holguin, executive director of the Lovington Economic Development Corporation, highlighted the long-term community impact.
“This clean energy project will be a catalyst for long-term growth,” Holguin said. “It will create quality jobs, increase local investment, expand our tax base and strengthen Lovington’s economic vitality.”
Positioning Lovington for Future Investment
Blue Pony’s announcement adds to a growing list of advanced and clean energy projects in New Mexico, particularly in the state’s southeastern region. With access to natural gas resources, available industrial land and supportive infrastructure, the region continues to attract energy-related investment.
For site selectors and corporate decision-makers, the project underscores New Mexico’s competitiveness in emerging energy industries and its ability to support capital-intensive manufacturing projects.
