AGRI Biofuels Infrastructure Grant

The AGRI Biofuels Infrastructure Grant, administered by the Minnesota Department of Agriculture (MDA), is a competitive grant program that supports the enhancement of biofuels infrastructure throughout Minnesota. This program is part of the Agricultural Growth, Research, and Innovation (AGRI) Program, which was established to promote Minnesota’s agricultural and renewable energy sectors. It is authorized under Minnesota Statute 41A.12 and funded through legislative appropriations, including contributions from organizations such as Minnesota Corn. The program’s core objective is to increase the accessibility and sales of ethanol fuel blends containing at least 15% ethanol (E15 or higher) by assisting retailers in upgrading or replacing fueling infrastructure to be compatible with E25 or higher ethanol blends. The funding scope for the AGRI Biofuels Infrastructure Grant includes retail petroleum stations seeking to replace or upgrade dispensers, storage tanks, and other equipment that cannot be certified for dispensing E25 or higher ethanol blends. A total of $4 million is available for this funding cycle, with awards ranging from a minimum of $5,000 to a maximum of $199,000. Each project must include at least a 35% cash match of the total project cost. Up to 5% of total eligible costs may be included as contingency funds, provided these are reflected in the submitted budget and backed by formal quotes. Approximately $1.5 million is reserved for applicants with no more than 10 retail dispensing sites. Grants can last up to three years from the contract start date, and expenses are only eligible once the grant agreement is fully executed and effective. Eligible applicants must be Minnesota-based retail petroleum dispensers with no more than 20 dispensing sites regardless of geographic location. The station must be operational and actively dispensing fuel to the public at the time of application; stations under construction are ineligible. Applicants must be in good standing with the State of Minnesota, including having no back taxes, loan defaults, or poor performance history on state grants. Leased properties are eligible, provided the applicant has written confirmation from the property owner agreeing to the installation of eligible equipment and lease terms extending through the grant period. Priority will be given to projects that provide critical access to ethanol fuel blends, are located in high-poverty counties, offer E15 or higher at every dispenser, or demonstrate the ability to sell high volumes of E15+ blends. Applications must be submitted online using MDA’s application portal. New users must create an account before selecting the “AGRI Biofuels Infrastructure Grant FY26” option. The application deadline is 4:00 p.m. Central Time on October 23, 2025. A written Q&A submission period closes on October 16, 2025, at 4:00 p.m. CT. Applicants are encouraged to submit early to avoid technical difficulties. Each application must be complete and unique to the project site; incomplete submissions will be rejected. Review will occur in two phases from October 24, 2025 through January 21, 2026. Applicants will be notified of award decisions on February 2, 2026. Contracts are expected to start as early as February 16, 2026. The evaluation process considers project goals, business readiness, marketing plans, budget clarity, and whether the project is in a priority area. Points are awarded for realistic and impactful outcomes, the ability to serve high volumes, and equity in distribution across the state. Projects must document anticipated increases in ethanol sales, include fuel sales history, and provide layout maps. Reimbursement requests must be supported by both proof of purchase and payment, and 10% of funds will be withheld until project completion and E15 dispensing is confirmed. Site monitoring will occur for all grants over $25,000. Applicants must also comply with state nondiscrimination policies, financial audits, and publicity requirements. For inquiries, applicants may email MDA.AGRIGrants@state.mn.us using “Biofuels Infrastructure Grant” in the subject line. For assistance with the online portal, applicants may also call 651-201-6500. Additional contact is available through Jenny Lezer at the MDA at 651-201-6133 or Jenny.Lezer@state.mn.us. The grant RFP and application materials are accessible via the MDA website.

Submit early; incomplete applications are rejected; include quotes and detailed budgets; tailor each application to the project site