AGRI Biofuels Infrastructure Grant Program 2025 – US

Grant funds are available to Minnesota retail stations (including service stations, convenience stations, and hypermarket fueling stations) seeking to invest in retail petroleum dispensers, fuel storage tanks, and other equipment needed to dispense biofuels to the public in accordance with the biofuel replacement goals established by the Minnesota Legislature (MINN. STAT. 239.7911). Retail petroleum stations in Minnesota with no more than 10 retail petroleum dispensing sites (regardless of their location) are eligible to apply for and receive funding.

The program is intended to increase access to and sales of motor fuel blends containing at least 15% ethanol by investing in equipment that is certified as compatible with E25 or higher blends.

Priorities

• This grant program serves start-up, modernization, or expansion of biofuels infrastructure and will prioritize:
  • Funding a combination of large and small projects to upgrade equipment to be compatible with E25 or higher blends.
  • Funding a combination of applicants supplying critical access to motor fuel and other goods and services as well as applicants capable of selling high volumes of E15 and higher blends.
  • Awarding funds equitably throughout the state.
  • Projects that serve socio-economically disadvantaged communities and communities where access to biofuels is limited.
• Grant outcomes will include:
  • Increased access to motor fuel blends containing at least 15% ethanol.
  • Increased sales of motor fuel blends containing at least 15% ethanol.

Funding Information

• MDA expects to award $3.375 million through the AGRI Biofuels Infrastructure Grant.
• You can request between $5,000 and $199,000 for an individual project.
• This grant requires a cash match. You must commit at least 35% of the total project cost as a cash match.
• They expect to award between 20 and 25 grants, but the final number depends on the size of awards.
• Grants may last up to three years from the contract start date.
• Applicants should anticipate that grant contracts will have an end date in late 2027 or early 2028 and may not be extended.

Eligible Project

• Projects must upgrade or replace equipment that does not have the ability to be certified for E25. Equipment may be new or used, but applicants should do their due diligence to determine if the used equipment is satisfactory and was not originally purchased using a prior AGRI Biofuels Infrastructure Grant.

Eligibility Criteria

• Applicants must:
  • Be a retail petroleum dispenser in Minnesota with no more than 10 retail petroleum dispensing sites, regardless of their location.
  • Be operating and dispensing fuel at the time of application (new stations under construction or planned for construction are not eligible).
  • Not be a fleet operator.
  • Be in good standing with the State of Minnesota.
    • No back taxes owed.
    • No defaults on Minnesota state-backed financing for the last seven years.
    • Acceptable performance on past MDA grants.
    • Compliant with current state regulations.
  • Be appropriately licensed and authorized to conduct business in Minnesota. Stations owned by MDA employees or their spouses are not eligible.
• Examples of eligible applicants:
  • Retail service stations
  • Convenience stations
  • Hypermarket fueling stations
• Stations owned, operated by, or serving Native American tribal communities are encouraged to apply, provided they meet all other eligibility requirements.
• Properties that are leased and not owned by applicants must indicate at the time of application the owners’ permission to pursue the proposed improvements to the premises. Applications that are accepted for funding and located on leased property will require written confirmation by owner prior to grant start date that (1) the lease agreement will accommodate the installation of equipment per the terms of the resulting grant contract agreement, and (2) that the lease agreement will extend to or beyond the end date of the grant period.
• Collaboration:
  • Eligible applicants may seek feedback from stakeholders in developing proposals. Applicants are encouraged to get letters of support from business, financial, and community partners to demonstrate support for the project and their capacity complete the project. These are not required but generally improve the application.

For more information, visit Minnesota Department of Agriculture.