Biofuel infrastructure grant program opens
A Minnesota Corn-supported state biofuel infrastructure grant program that will further boost sales of higher ethanol blends by helping more retailers offer them has begun accepting proposals.
Now through March 17, the application for the Agricultural Growth, Research, and Innovation (AGRI) Biofuels Infrastructure Grant Program is open online. Retailers will learn whether they will receive grants in May, and fund distribution is expected to begin in June and July.
“This week’s milestone means that more Minnesota drivers than ever are closer to being able to realize the benefits of higher ethanol blends at the pump,” Minnesota Corn Growers Association President Bryan Biegler said. Those benefits, he noted, include improved air quality and engine performance, reduced greenhouse gas emissions and a lower cost.
“Once consumers see these benefits, we’re confident they’ll want to fill up with higher ethanol blends,” Biegler said. “We appreciate the work of the Minnesota Department of Agriculture to get this program up and running and look forward to seeing the results.”
Minnesota has had higher ethanol blends available for years. But the costs associated with upgrading equipment to accommodate higher blends can be a barrier for some fueling stations.
To help more retailers offer higher blends, the state Legislature in 2021 passed the AGRI grant program. As part of its mission to expand markets for corn farmers and improve quality of life for all Minnesotans, MCGA advocated for the program’s passage. MCGA and the Minnesota Corn Research & Promotion Council also contributed $1 million to the program.
Grower-leaders say they’re excited about the program’s potential to increase sales of Unleaded 88, which contains 15% ethanol and derives its name from its 88 octane rating. The fuel, which is approved for use by the U.S. Environmental Protection Agency in all model year 2001 and newer vehicles, burns cleaner than regular unleaded and is typically offered at a lower price.
By making Unleaded 88 available at more pumps, the grant program could significantly increase sales — from 86.7 million gallons in 2021 to over 120 million gallons in future years.
“By supporting infrastructure, we’re ensuring that more Minnesotans can access this cleaner-burning, lower-cost fuel,” Biegler said.
The AGRI program will provide retailers funds to offset the costs of fuel dispensers, storage tanks and other equipment needed to sell higher ethanol blends. It’s open to Minnesota retailers with 10 or fewer locations, and retailers must provide at least 35% of the total project funding. In total, up to $6.6 million will be distributed.
“Encouraging stations to offer higher biofuels blends to customers is an immediate step we can take to lower carbon emissions,” Minnesota Agriculture Commissioner Thom Petersen said in a statement. “It not only will help us meet Minnesota’s climate goals, but also strengthens our agricultural and rural economies, and the state’s as a whole.”
To learn more about the program, visit mda.state.mn.us. Learn more about the benefits of ethanol-blended fuels, and where to find them, at betterfuel.org.
