(The Center Square) – Gas stations in Minnesota may be eligible for funding to upgrade or replace existing infrastructure in the state’s newest move to expand biofuel availability.
Gov. Tim Walz announced the Minnesota Department of Agriculture’s Biofuels Infrastructure Grant Program will award more than $3.3 million to service stations to invest in E25-compatible equipment. E25 is a gasoline blend made up of 25% ethanol and 75% gasoline.
“Investing in homegrown biofuels helps us lower emissions and save drivers money, while giving a boost to Minnesota’s agriculture and renewable energy sectors,” Walz said in a statement. “These grants will help gas stations invest in the infrastructure needed to expand their biofuel supply – it’s a win for farmers, business owners, and consumers.”
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.
To be eligible for funds, a service station must have no more than 10 petroleum dispensing sites, and it cannot upgrade or replace equipment that is already certified for E25 or higher blends. Grant recipients must also promote the sale of motor fuel blends containing at least 15% ethanol and document the sales of those blends going forward.
“Minnesota’s service stations play a fundamental role in connecting consumers with homegrown biofuels that provide drivers with cleaner, lower-cost fuel alternatives,” Minnesota Agriculture Commissioner Thom Petersen said. “Thanks to the support of the Minnesota Legislature and Minnesota Corn, we can continue to build out the infrastructure to meet the growing demand for higher blend motor fuels and boost our ag economy.”
While the price per gallon of gasoline typically falls the higher the ethanol ratio of the blend, fuel efficiency also falls, according to U.S. government website Fuel Economy.
