Minnesota Launches Biofuel Funding For 2026

By Scout Nelson

The Minnesota Department of Agriculture (MDA) has opened applications for the 2026 AGRI Biofuels Infrastructure Grant program, a cost-share initiative designed to help fuel retailers upgrade equipment compatible with E15 and higher ethanol blends. Applications will be accepted until October 23, with funding notifications expected in early February.

The program, established by the State Legislature in 2021, was created to expand consumer access to renewable fuels and increase sales of E15 and higher biofuel blends. Since its launch, lawmakers have invested millions into the program, including $6 million in 2021, $6.75 million in 2023, and $5.5 million in 2025. Additional support came from the Minnesota Corn Research & Promotion Council, which contributed $1 million in corn checkoff funds during the program’s first year.

To date, the program has funded 80 projects across Minnesota, including 20 awarded in 2025. For 2026, MDA has allocated approximately $4 million, with expectations to fund 20 to 25 projects. Applicants may request between $5,000 and $199,000, provided they meet the 35% cash match requirement. Eligible expenses include certified retail petroleum dispensers, storage tanks, and related equipment. All equipment must be compatible with E25 or higher blends, and upon project completion, stations must be dispensing E15 or higher.

A new change for 2026 expands eligibility. Previously limited to retailers with up to 10 locations, the program now allows businesses with up to 20 sites to apply.

E15, also known at the pump as Unleaded 88, is approved for use in vehicles from model year 2001 and newer. It is offered at more than 520 fuel stations in Minnesota. Drivers choosing this blend save an average of 14 cents per gallon while also reducing emissions compared to regular unleaded fuel.

Through continued state support and industry investment, the Biofuels Infrastructure Grant program plays a key role in advancing renewable fuel access while strengthening rural communities and supporting sustainable energy solutions.

Photo Credit:vista-mipan