Grants Boost Rural Economies and Jobs

By Scout Nelson

The Minnesota Department of Agriculture (MDA) is seeking applications from service stations that want to upgrade infrastructure and offer E15, gasoline blended with 15% ethanol, at the pump. Funding is available through the Agricultural Growth, Research, and Innovation (AGRI) Biofuels Infrastructure Grant program to expand consumer access to higher blends and modernize retail equipment across the state.

The MDA expects to award approximately $4 million for projects that install equipment certified for E25 or higher blends. This year’s legislative session expanded eligibility to service station companies with no more than 20 fueling locations, up from 10 in previous grant cycles. The program is supported by a legislative appropriation with additional backing from Minnesota Corn.

Examples of eligible equipment include retail petroleum dispensers, fuel storage tanks, and other associated hardware needed to dispense biofuels to the public. Applicants may request between $5,000 and $199,000 per project and must provide at least 35% of total project cost as a cash match.

“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,” said Agriculture Commissioner Thom Petersen. “It’s great to see bipartisan support for investments that keep our biofuels industry strong and growing.”

Funds can be used only for eligible costs incurred after the grant contract is fully signed, which is expected in early 2026. Applicants must already be operating and dispensing fuel in Minnesota at the time of application. New stations under construction or planned for construction are not eligible.

Applications are due through the MDA online portal by Thursday, October 23, 2025, at 4 p.m. CT, followed by a competitive peer review process. Prospective applicants should visit the AGRI Biofuels Infrastructure Grant webpage for complete eligibility and application instructions.

The AGRI Program administers grants to producers, agribusinesses, schools, and other partners statewide to advance Minnesota’s agricultural and renewable energy sectors. By helping retailers install certified equipment for higher ethanol blends, this grant round aims to increase consumer access to lower-cost, lower-carbon fuel options while strengthening local economies.

Photo Credit:minnesota-department-of-agriculture