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Minnesota Provides Funds to Expand Biofuel Availability

By Bill Dubensky Aug 29, 2024 | 12:35 PM

 

(KNOX) – Minnesota has new funding to expand biofuel availability across Minnesota. The Minnesota Department of Agriculture (MDA) is currently seeking grant applications from gas stations looking to expand their selection of motor fuel blends containing at least 15% ethanol.

“Investing in homegrown biofuels helps us lower emissions and save drivers money, while giving a boost to Minnesota’s agriculture and renewable energy sectors,” said Governor Walz. “These grants will help gas stations invest in the infrastructure needed to expand their biofuel supply – it’s a win for farmers, business owners, and consumers.”

MDA’s Biofuels Infrastructure Grant Program will award over $3.3 million to service stations with no more than 10 petroleum dispensing sites in Minnesota to invest in equipment certified as compatible with E25 or higher blends. The grant program is funded through a legislative appropriation for MDA’s Agricultural Growth, Research, and Innovation (AGRI) Program and with additional support from Minnesota Corn.

“Minnesota’s service stations play a fundamental role in connecting consumers with homegrown biofuels that provide drivers with cleaner, lower-cost fuel alternatives,” said Minnesota Agriculture Commissioner Thom Petersen. “Thanks to the support of the Minnesota Legislature and Minnesota Corn, we can continue to build out the infrastructure to meet the growing demand for higher blend motor fuels and boost our ag economy.”

Examples of eligible equipment include retail petroleum dispensers, fuel storage tanks, and other equipment needed to dispense biofuels to the public. Applicants may request between $5,000 and $199,000 for an individual project and must commit at least 35% of the total project cost as a cash match.

Funds can only be used to pay for eligible costs incurred after the grant contract has been signed by all parties, which is expected to take place in early 2025. Applicants must be operating and dispensing fuel at the time of application. New stations under construction or planned for construction are not eligible.

Applications must be submitted through the MDA’s online portal by 4 p.m. on Thursday, October 30, 2024. Visit the AGRI Biofuels Infrastructure Grant webpage for full eligibility and application details.

The AGRI Program administers grants to farmers, agribusinesses, schools, and more throughout Minnesota to advance the state’s agricultural and renewable energy sectors.

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