U.S. Department of Agriculture Secretary Tom Vilsack today announced that USDA plans to invest up to $500 million from President Biden’s Inflation Reduction Act to increase the availability of domestic biofuels and give Americans additional cleaner fuel options at the pump.
In December 2022, USDA made available $50 million in Inflation Reduction Act funding to expand the use and availability of higher-blend biofuels through the Higher Blends Infrastructure Incentive Program (HBIIP). Secretary Vilsack today announced the first awardees of 59 infrastructure projects that will receive a total of $25 million.
Among the awards in Minnesota, Farmers Cooperative Oil Company will use a $623,500 grant to replace nine E85 dispensers, two B20 dispensers, two ethanol storage tanks and two biodiesel storage tanks at a fueling station in Barnesville. The project is expected to increase annual sales of biofuels by nearly 122,000 gallons. Overall, 17 projects in Minnesota will receive awards according to today’s announcement from USDA.
In North Dakota, Northdale Oil Company will use a $41,163 grant to create infrastructure and to expand the sales and use of renewable fuels. Northdale Oil Inc is the owner of 10 or fewer fueling stations. This project will install two E15 dispensers at one fueling station located in Park River. This project projects to increase the amount of ethanol sold by 290,072 gallons per year.
Arrowhead Prairie Co-op will use a $85,325 grant to create infrastructure to expand the sales and use of renewable fuels. Arrowwood Prairie Co-Op is the owner of 10 or fewer fueling stations. This project will replace two E15 dispensers, four E85 dispensers, and five ethanol storage tanks at one fueling station located in Carrington. This project projects to increase the amount of ethanol sold by 149,648 gallons per year.
Additional awards will be announced in the coming weeks.
HBIIP seeks to increase the availability of higher blends of ethanol and biodiesel derived from U.S. agricultural products by sharing the costs to build and retrofit biofuel-related infrastructure.
Grants cover up to 75% or $5 million of total project costs to help facilities convert to higher-blend fuels. The fuels must be greater than 10% for ethanol and greater than 5% for biodiesel.
The $450 million in new funds will be available quarterly starting July 1. Each quarter, $90 million will be available to support a variety of fueling operations.
USDA news release
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