The Green Fertilizer Grant intends to support agricultural and rural electric cooperatives registered as 308A or 308B with the state of Minnesota so they can invest in green fertilizer manufacturing. The MDA will begin accepting applications on Dec. 18 and may award between $250,000 and $6.665 million for business-ready and shovel-ready projects. Applications will be due March 18, 2025.
Applicants are required to have long-term offtake agreements between the cooperative and the green fertilizer production facility, while also obtaining training in best management practices in the use of green fertilizer. An offtake agreement is an arrangement between a producer and a buyer to purchase or sell portions of the producer's upcoming goods.
Additionally, green fertilizer must be produced from electrolyzers that have matched electricity consumption with wind or solar, on a basis determined by the commissioner, or are connected directly to a wind or solar facility.
While local production and use of green nitrogen-based fertilizers is one strategy to reduce greenhouse gas emissions, green fertilizers have significant climate and sustainability benefits compared to fossil-fuel derived nitrogen-based fertilizers, according to the Department of Ag.
For full eligibility requirements and details of the application process, review the request for proposal found on the Green Fertilizer Program Grant webpage. Sign up for MDA email alerts to be notified when the Green Fertilizer Grant application goes live. You can also receive announcements on other department grant opportunities.
Background
In 2023, the Minnesota Legislature appropriated $7 million to the MDA for a Green Fertilizer Grant Program. The program is intended to provide financial support to cooperatives that invest in a green fertilizer production facility located in Minnesota. For this program, green fertilizer is defined as any nitrogen-based fertilizer that contains hydrogen produced via electrolysis powered by renewable energy.
The Green Fertilizer Grant Program is a financial tool that can be combined with federal funds like the Inflation Reduction Act Clean Hydrogen Production Tax Credit or Department of Energy loan programs to de-risk and incentivize development of the local green fertilizer industry.
No comments:
Post a Comment