Biofuel infrastructure grant program opens for applications
The Minnesota Department of Agriculture (MDA) cost-share program that helps fuel retailers upgrade to equipment compatible with E15 and higher ethanol blends has opened for 2026 applications.
The AGRI Biofuels Infrastructure Grant program is accepting applications between now and Oct. 23. MDA will review applications this fall and plans to notify applicants whether they will receive funding in early February.
Founded by the State Legislature in 2021, the AGRI biofuels grant program aims to increase consumer access to—and sales of—E15 and higher biofuel blends. The Minnesota Corn Growers Association (MCGA) has been a proud supporter of the program as part of its mission to increase market opportunities for corn farmers.
The grant program was kick-started with a $6 million appropriation from the Legislature in 2021. Lawmakers subsequently appropriated $6.75 million to the program in 2023 and $5.5 million to the program this past May. Additionally, the Minnesota Corn Research & Promotion Council provided $1 million in corn checkoff funds to the program in 2021.
Thanks to funding from lawmakers and the corn checkoff, MDA has allocated grants to 80 projects, including 20 in 2025.
Like in past years, 2026 applicants can request between $5,000 and $199,000 and must provide a 35% cash match. Eligible expenses include certified retail petroleum dispensers, storage tanks, and related equipment. Equipment must be compatible with E25 or higher blends, and at project completion, grantees must be dispensing E15 or higher.
New for 2026, MDA has expanded program eligibility to include retailers with up to 20 locations. Previously, the program was only open to retailers with no more than 10 locations.
MDA has approximately $4 million in funding available for grants in 2026 and expects to fund between 20 and 25 projects.
Approved for use in vehicles 2001 and newer, E15 is typically marketed at the pump as Unleaded 88 in a nod to its 88 octane rating. The blend is offered at more than 520 Minnesota fuel stations and saves drivers an average of 14 cents at the pump while reducing emissions compared to regular unleaded.
Find an Unleaded 88 station near you by visiting mnfuels.com.
