USDA provide grants for biofuel expansion
News | Published on May 6, 2024 at 12:17pm CDT
U.S. Department of Agriculture (USDA) Rural Development State Director Colleen Landkamer announced recently that USDA is funding more than 80 clean energy projects in Minnesota to lower energy bills, expand access to domestic biofuels and create jobs and new market opportunities for U.S. farmers, ranchers and agricultural producers.
As part of the funding, Fuel Express in Glenwood and Starbuck was awarded a grant.
Fuel Express Inc. in Starbuck and Glenwood will use a $741,000 grant to install four E85 dispensers, four B20 dispensers, one ethanol storage tank, and two biodiesel storage tanks at its two fueling stations. This project is expected to increase the amount of biofuel sold by 165,000 gallons per year.
Morris Co-op Association in Morris will use a $575,250 grant to install three E85 dispensers, two B20 dispensers, two ethanol storage tanks, and one biodiesel storage tank at its fueling station. This project is expected to increase the amount of biofuel sold by 110,000 gallons per year.
In all, USDA is providing $12.9 million in funding in Minnesota through the Rural Energy for America Program (REAP) and the Higher Blends Infrastructure Incentive Program (HBIIP). This is part of a total of $238 million in announcements nationwide.
State Director Landkamer announced more than $8 million in grants through REAP to support projects in Minnesota.
The REAP program helps agricultural producers and rural small business owners expand their use of wind, solar, geothermal and small hydropower energy and make energy efficiency improvements. These innovations help them increase their income, grow their businesses, address climate change and lower energy costs for rural Minnesotan families. which is enough to power 51 homes.
USDA continues to accept REAP applications and will hold funding competitions quarterly through Sept. 30, 2024. The funding includes a dedicated portion for underutilized renewable energy technologies. For additional information, contact a local energy coordinator.
USDA is also awarding more than $4.9 million in grants through HBIIP to business owners in Minnesota to increase the availability of domestic biofuels, giving rural residents cleaner, more affordable fuel options.
HBIIP provides grants to fueling station and distribution facility owners, including marine, rail, and home heating oil facilities, to help expand access to domestic biofuels.
USDA continues to accept applications for funding to expand access to domestic biofuels. These grants will support the infrastructure needed to reduce out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure such as pumps, dispensers and storage tanks. Applications are being accepted quarterly through Sept. 30, 2024.
USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America. To subscribe to USDA Rural Development updates, visit the GovDelivery Subscriber Page.
USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.