Application for biofuel infrastructure grant opens
A Minnesota Corn Growers Association (MCGA)-supported biofuel infrastructure grant program meant to help small fuel retailers upgrade their equipment to be compatible with higher ethanol blends is open for applications.
The online application portal for the Minnesota Department of Agriculture’s (MDA) Agricultural Growth, Research, and Innovation (AGRI) Biofuels Infrastructure Grant Program opened this month. Applications for the grant are due by 4 p.m. on Oct. 12.
MDA expects to award $3.335 million through the program during this round of funding. It will provide fuel retailers with 10 or fewer stations up to 65% of a project’s cost. Grant awards range from $5,000 to $199,000. The department expects to distribute 25-40 grants, with most contracts starting in early 2024.
“As consumer demand for cleaner fuel options continues to grow, the MDA is pleased we can partner with service stations to expand their capacity for higher ethanol blends at the pump,” MDA Commissioner Thom Petersen said in a statement. “Biofuels offer an affordable, immediate step to meeting Minnesota’s climate goals, while supporting our farmers and rural economies.”
As part of their applications, fuel retailers must submit a marketing plan to promote sales of E15 or Unleaded 88 — a biofuel blend containing 15% ethanol — and higher ethanol blends.
E15/Unleaded 88 is approved for use in cars, trucks, and SUVs model year 2001 and newer, while higher ethanol blends such as E85 are approved for use in flex fuel vehicles. More than 450 stations across the state currently offer E15/Unleaded 88 and/or E85.
To qualify for an AGRI grant, retailers also must commit to tracking sales of E15 and higher ethanol blends during the term of the grant period and beyond. Potential grant-eligible projects include:
- Upgrading fuel storage tanks that cannot be certified for E25 with tanks compatible with E25 and higher blends.
- Replacing or upgrading other equipment needed to dispense E25 or higher blends.
- Modifying E85 equipment to be compatible with E25, if not already compatible.
Program background
During the 2023 state legislative session, which wrapped up in May, lawmakers allocated $6.75 million to the AGRI program. It followed a 2021 legislative session in which lawmakers approved $6 million for the AGRI program.
Given the many benefits of increased usage of higher ethanol blends, which include cost savings, stronger rural communities, and improved air quality, MCGA advocated for funding for biofuel infrastructure grants in both 2021 and 2023. Additionally, in 2021, the Minnesota Corn Research & Promotion Council invested $1 million in corn check-off funds in the state grant program.
In October 2022, MDA announced that 44 fuel stations would be awarded grants from the funds the Legislature allocated in 2021.
The Minnesota Corn Growers Association is pleased to see the AGRI grant open for the newest round of funding. To find a fueling station offering ethanol blends near year you, visit betterfuel.org.
