Grants Available to Boost Biofuels at Minnesota Service Stations

Aug 23, 2023

Minnesota retail service stations looking to increase access to and sales of motor fuel blends containing at least 15% ethanol are encouraged to apply for funding currently available through the Minnesota Department of Agriculture (MDA).

The Agricultural Growth, Research, and Innovation (AGRI) Biofuels Infrastructure Grant Program will award up to $3.335 million in this round of funding to offset the cost of replacing or upgrading current station equipment so it can be certified as compatible with E25 or higher motor fuel blends. Examples of eligible equipment include retail petroleum dispensers and fuel storage tanks.

“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,” said MDA Commissioner Thom Petersen.  “Biofuels offer an affordable, immediate step to meeting Minnesota’s climate goals, while supporting our farmers and rural economies.”

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. Grants may be expended over a three-year period and must start after mid-January 2024.

Applicants must be a retail petroleum dispenser in Minnesota with no more than 10 sites, regardless of location. Separate applications must be submitted for each site in Minnesota seeking funding.

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