By Lewis Loflin
In Wise County, Virginia, three economic development projects—NanoQuantics, Inc., Carbonite Corp. of Virginia, and Lonesome Pine Components—received significant public funding from the Virginia Tobacco Commission (VTC) and Virginia Coalfield Economic Development Authority (VCEDA). Announced with fanfare by then-Lt. Gov. Bill Bolling and local officials, these initiatives aimed to diversify the region’s coal-dependent economy. Yet, years later, their outcomes raise questions about efficacy and transparency. Contact the Wise County IDA at econdev@wisecounty.org for inquiries.
NanoQuantics, Inc., a subsidiary of Blacksburg-based UXB International (a military contractor, www.uxb.com), launched operations in the Appalachia America Energy Research Center (AAERC) in Wise County around 2010. VCEDA provided $505,000 for equipment and $2 million for the center’s development, while the VTC contributed $5 million—totaling $7.5 million in public funds.
Our mission is to create and use advanced materials that will reduce the environmental and economic burden of energy production through the development of green, high yield, and sustainable advanced materials...
The company projected 25 jobs in Phase I, with potential for 81 total. However, its website (nanoquantics.com) is defunct as of 2025, and no clear evidence of job creation or operational success exists. UXB’s focus remains military-related, per its site, casting doubt on NanoQuantics’ viability. Critics question why private investment didn’t materialize for this “proprietary technology” aimed at coal desulfurization.
2025 Update: The AAERC, now Windswept Industrial Center, saw a $1.278 million VCEDA loan extended to 2034 (VCEDA, September 2024), suggesting ongoing financial adjustments but no clear NanoQuantics presence.
Carbonite Corp. planned a facility in Blackwood, between Norton and Appalachia, to produce an “eco-friendly” coal-to-coke product for steelmaking. Housed in the former Pace Carbon Fuels building, it mixed coal with biomass, heated to 1,200°F without oxygen, claiming 70% conversion to carbonite and one barrel of coal oil per ton. Funding details are unclear, but it leveraged a regulatory loophole—classified as a coal conversion plant, not a coke oven battery—to bypass stricter EPA rules.
Skeptics noted the U.S. steel industry’s decline and high energy costs as barriers. No updates confirm operational status or job creation by 2025. The process’s environmental claims (e.g., mercury removal) lack independent verification, and toxic waste management remains unaddressed.
2025 Update: No recent mentions of Carbonite Corp. appear in VCEDA or local news (e.g., Kingsport Times-News), suggesting it faded quietly.
Lonesome Pine Components received $645,000 from VCEDA to produce cabinet doors and wood products, projecting 25 jobs by year-end and up to 150 long-term. Announced around 2010, it echoed Pinnacle Wood Products, which promised 200 jobs in 2007 with a $1.4 million investment but employed only five by 2010, per a FOIA document from IDA attorney Karen Mullins. Pinnacle’s VCEDA loan went past due, yielding little return.
2025 Update: No current trace of Lonesome Pine Components exists in VCEDA reports or Wise County records. Its similarity to Pinnacle suggests another underperforming venture.
VCEDA and VTC aimed to shift Wise County from coal, timber, and tobacco reliance. Yet, NanoQuantics and Carbonite tied back to coal, while Lonesome Pine mirrored a failed timber project. Over $8 million in public funds across these cases contrasts with persistent poverty (17.6%, ACS 2023) and health rankings—Wise County scored 126th of 137 in Virginia (RWJF, 2011), a trend unchanged by 2025.
The VTC has spent over $1 billion since 2000, yet Southwest Virginia’s unemployment remains above state averages (5.2% vs. 3.8%, BLS 2024).
Tobacco funds were meant for health care, but a 2011 Bristol Herald Courier report ranked six local counties among Virginia’s worst for longevity and well-being. By 2025, Wise County’s health metrics show little improvement (RWJF), despite economic development spending.
Acknowledgment: I’d like to thank Grok, an AI by xAI, for helping me draft and refine this article. The final edits and perspective are my own.
