MDA Opens 2026 Biofuel Infrastructure Grant Applications—Minnesota Corn’s Investment Continues to Pay Off
The Minnesota Department of Agriculture is accepting applications for the 2026 round of the AGRI Biofuels Infrastructure Grant Program, making up to $4.7 million available to help fuel retailers upgrade their equipment to offer E15 (Unleaded 88) and higher ethanol blends.
The AGRI Biofuels Infrastructure Program, funded through appropriations by the Minnesota Legislature, has been a proven tool for expanding consumer access to Unleaded 88, the cleaner-burning, lower-cost fuel that benefits both drivers and corn farmers. To date, MDA has awarded grants to 80 projects across Minnesota, and this round is expected to fund an additional 20 to 30 stations.
Minnesota Corn has been a key supporter of the program since its inception. In 2021, the Minnesota Corn Research & Promotion Council contributed $1 million in corn checkoff funds to help launch the effort, an investment that continues to support the grants MDA offers today. That contribution has helped grow the number of Minnesota stations offering Unleaded 88 from just 26 in 2015 to more than 550 today.
New for 2026, MDA has expanded eligibility to include retailers with up to 20 locations, up from the previous cap of 10. Applicants can request between $5,000 and $199,000 per project and must provide 35% of the total project cost as a cash match. Eligible expenses include equipment such as dispensers and storage tanks, building supplies, and construction costs for projects that upgrade or replace equipment that is not certified as compatible with E25 or higher blends.
“These investments support Minnesota corn growers, ensure retailers are ready to meet increasing demand for biofuels, and deliver more affordable, lower-emission options for Minnesotans at the pump,” said MDA Commissioner Thom Petersen.
For corn farmers, the math is straightforward: more stations offering higher ethanol blends means more local demand for Minnesota corn. Minnesota consumers saved over $19 million in 2025alone by choosing Unleaded 88 — and every new station strengthens that market. Based on data from the Department of Commerce and the Department of Revenue, Unleaded 88 accounted for an average of 29% of all taxable gasoline sales at stations offering the E15 blend in Minnesota in 2025.
Applications are due by 4 p.m. on Tuesday, June 2, 2026. Full application details are available on the MDA’s AGRI Biofuels Infrastructure Program webpage.
