Minnesota State Wire

The Minnesota Department of Agriculture (MDA) has announced that it is accepting applications for grants aimed at expanding the availability of E15, a gasoline blend containing 15% ethanol, at gas stations across the state. The initiative is part of the Agricultural Growth, Research, and Innovation (AGRI) Biofuels Infrastructure Grant program.

Approximately $4 million will be distributed to service stations seeking to upgrade their infrastructure with equipment certified for E25 or higher blends. This funding round reflects changes made during this year’s legislative session, which increased eligibility from service stations with up to 10 fueling locations to those with no more than 20. Funding comes from a legislative appropriation as well as support from Minnesota Corn.

Eligible expenses under the grant include items such as retail petroleum dispensers and fuel storage tanks required for dispensing biofuels. Applicants can request between $5,000 and $199,000 per project but must provide at least 35% of the total project cost in cash matching funds.

Agriculture Commissioner Thom Petersen stated, "Greater access to E15 delivers real benefits for Minnesota by opening markets for farmers, boosting rural economies, and helping us move toward a cleaner future. It’s great to see bipartisan support for investments that keep our biofuels industry strong and growing."

Funds awarded through this program may only be used for costs incurred after all parties have signed the grant contract. The signing is expected in early 2026. To qualify, applicants must already be operating and dispensing fuel; new stations still under construction are not eligible.

Applications are due via the MDA’s online portal by Thursday, October 23, 2025 at 4 p.m., after which a competitive peer review process will take place. Full details on eligibility and how to apply can be found on the AGRI Biofuels Infrastructure Grant webpage: https://www.mda.state.mn.us/business-dev-loans-grants/agri-biofuels-infrastructure-grant.

The AGRI Program offers grants not only to gas stations but also supports farmers, agribusinesses, schools, and other entities across Minnesota in efforts to strengthen both agriculture and renewable energy sectors within the state.