Green Fertilizer Program

The Green Fertilizer Grant Program is administered by the Minnesota Department of Agriculture to support the development of green fertilizer production facilities within the state. This initiative aligns with Minnesota’s goals for climate sustainability and agricultural innovation by promoting the production of nitrogen-based fertilizers derived from renewable energy sources. It specifically aims to help agricultural and rural electric cooperatives invest in technologies that reduce carbon emissions associated with traditional fertilizer production. The program provides a total of approximately $3.8 million in available funds for eligible projects. Individual grants range from a minimum of $250,000 to a maximum of $3.8 million, depending on project scale and competitiveness. The funding is intended for investments in Minnesota-based facilities producing anhydrous ammonia, urea, or hydrogen using renewable energy sources. Facilities must use renewable energy and hydrogen produced within 100 miles of the site and achieve operational status within five years of the effective grant agreement date. Construction must begin by December 31, 2027, and projects must demonstrate readiness, financial support, and potential for regional economic benefit. Applicants must be agricultural or rural electric cooperatives organized under Minnesota Statutes 308A or 308B and be in good standing with the State of Minnesota. They must also commit to providing training in fertilizer application best management practices and maintaining information-sharing programs with cooperative members. Eligible projects will be prioritized based on business readiness, leveraged financing, and location in Minnesota counties with poverty rates greater than nine percent. The Green Fertilizer Grant operates as a reimbursement program. Applicants may propose alternative reimbursement cycles during grant negotiation, though initial payment is based on verified investment expenditures. Matching funds are required, with cooperatives expected to contribute at least 50 percent of the total investment cost. This match ensures substantial commitment from participating entities and encourages financially sustainable projects. The Minnesota Department of Agriculture may recover funds from projects failing to achieve commercial-scale production by July 1, 2030. Applications must be submitted online through the MDA grants portal by 4:00 p.m. Central Time on Tuesday, December 2, 2025. Questions must be submitted by 4:00 p.m. on November 18, 2025, to MDA.AGRIGRANTS@state.mn.us with “Green Fertilizer Grant” in the subject line. Program contacts include Jenny Lezer at 651-201-6133 and the MDA Grants Line at 651-201-6500. The full Request for Proposals (RFP) document provides further eligibility details and can be accessed on the official program website. Awards are expected to be determined following a competitive proposal review process, with each awarded project required to meet state compliance and performance reporting standards.

Projects with clear private financing and business readiness are prioritized; ensure cooperative registration under MN Statutes 308A/308B.