MOSES LAKE — The state approved $2 million for a new substation to facilitate a possible BMW parts manufacturer.

SGL Automotive Carbon Fibers, a company comprised of BMW Group and SGL Group that makes parts for BMW cars, still hasn’t formally announced plans to build a carbon fiber plant in Moses Lake. The project was referred to as “Project Chinook.”

BMW plans to use carbon fibers and fabrics in the electric “Megacity Vehicle,” developed by the car company last year, according to a company Web site. The fibers are slated to be produced at a site in North America.

A $1.5 million loan and $500,000 grant from state Community Economic Revitalization Board is expected to pay for part of a $7 million substation and transmission line for the plant, according to port Project Consultant David Bailey. It is unclear where the rest of the funding would come from.

“It specifically helps with electrical upgrades (that would be) helpful for the facility,” he said. “We’re acting as a conduit because it has to go through the public sector.”

The money is contingent on whether or not the company comes to Moses Lake, Bailey said.

“There’s been no official announcement from the Project Chinook people,” he said. “We’re just preparing ourselves in advance … It’s all contingent on their official announcement that Moses Lake has been selected.”

PUD Public Information Officer Dorothy Harris said until there is a formal announcement about the project, the utility doesn’t have any plans for the substation.

Jon Smith, Grant County EDC managing director, said he didn’t have any more information about SGL Automotive Carbon Fibers.