Funds Available to Expand Biofuel Access in Minnesota

The Minnesota Department of Agriculture (MDA) is currently seeking grant applications from gas stations looking to upgrade their infrastructure to offer E15, gasoline blended with 15% ethanol, at the pump. 

The MDA expects to award approximately $4 million through its Agricultural Growth, Research, and Innovation (AGRI) Biofuels Infrastructure Grant program to help service stations install equipment certified for E25 or higher blends. This year’s legislative session expanded eligibility to service stations with no more than 20 fueling locations, up from 10 in previous grant cycles. The program is funded through a legislative appropriation with additional support from Minnesota Corn. 

Examples of eligible equipment include retail petroleum dispensers, fuel storage tanks, and other equipment needed to dispense biofuels to the public. Applicants may request between $5,000 and $199,000 for an individual project and must commit at least 35% of the 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 only be used to pay for eligible costs incurred after the grant contract has been signed by all parties, which is expected to take place in early 2026. Applicants must be operating and dispensing fuel at the time of application. New stations under construction or planned for construction are not eligible.

Applications must be submitted through the MDA’s online portal by Thursday, Oct. 23, 2025, by 4 p.m. with a competitive peer review process to follow. Visit the AGRI Biofuels Infrastructure Grant webpage for full eligibility and application details.

The AGRI Program administers grants to farmers, agribusinesses, schools, and more throughout Minnesota to advance the state’s agricultural and renewable energy sectors.

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Media Contact
Nikki Warner, MDA Communications
651-238-7909
Nikki.Warner@state.mn.us