Green Fertilizer Grant Program

The Green Fertilizer Grant Program is administered by the Minnesota Department of Agriculture and is authorized under state law to support the development of sustainable agricultural inputs. The program is designed to accelerate the adoption and production of green fertilizers, which are nitrogen-based fertilizers produced using water, air, and renewable energy. These fertilizers offer climate and environmental benefits by reducing greenhouse gas emissions associated with traditional fertilizer production. The program aligns with broader state and federal sustainability goals and allows applicants to leverage additional funding sources such as federal tax credits and Department of Energy financing programs. The primary objective of the program is to provide financial assistance to agricultural and rural electric cooperatives so they can invest in green fertilizer production facilities located within Minnesota. Funding is restricted to investments in these facilities, specifically through equity shares or similar ownership stakes. The program emphasizes projects that demonstrate strong business readiness, financial backing from private or public sources, and geographic impact in areas with higher poverty rates. Eligible facilities must use renewable energy and green hydrogen in production processes and must meet strict sourcing and operational requirements, including producing final fertilizer products within Minnesota and becoming operational within five years. Applicants must meet several eligibility criteria, including being organized under Minnesota statutes as an agricultural or rural electric cooperative and maintaining good standing with the state. They must also commit to long-term offtake agreements with fertilizer producers and provide training to cooperative members on best management practices for fertilizer application. Additional requirements include proper licensing, compliance with regulations, and the absence of financial or legal disqualifications. Collaboration with fertilizer production partners is essential, and applicants must demonstrate readiness through business plans, financial documentation, and project feasibility studies. The program provides approximately $3.8 million in total funding, with individual awards ranging from $250,000 to $3.8 million. Awards are determined through a competitive review process, and the number of awards may vary, though the agency anticipates awarding between one and three grants. A mandatory cost-sharing requirement applies, requiring applicants to contribute at least 50 percent of the total project investment from allowable sources such as cash, loans, or other non-state grants. The grant operates on a reimbursement basis, meaning funds are disbursed after eligible expenses are incurred and documented. Applications must be submitted through an online application system by 4:00 p.m. Central Time on July 15, 2026. Applicants are required to create an account, complete all required forms, and submit supporting documentation. Questions must be submitted in writing by July 1, 2026, and responses are published publicly. The application includes detailed sections covering organizational capacity, financial planning, project feasibility, and facility-specific information. A pre-award risk assessment is conducted for selected applicants, requiring financial statements, certifications, and documentation of operational capacity. The review process involves evaluation by agency staff and external reviewers using a structured scoring system that prioritizes business readiness, financial support, project feasibility, and alignment with program goals. Final funding decisions are made by the Commissioner of Agriculture. Successful applicants enter into a grant agreement with an expected start date of October 2026 and a performance period through September 30, 2029. Projects are subject to ongoing monitoring, reporting requirements, and compliance checks, with annual reports and final deliverables required. The program includes long-term accountability provisions, including reporting on production outcomes, carbon intensity, and cooperative member engagement. Facilities must reach commercial-scale production by September 30, 2031, or risk repayment obligations. The program also enforces strict guidelines on eligible and ineligible expenses, procurement practices, and financial documentation. For questions or assistance, applicants can contact the program via email at MDA.AGRIGrants@state.mn.us or by phone at 651-201-6500. Additional guidance and full application details are provided in the official request for proposals document.

Emphasize strong business readiness, secured financing, completed feasibility studies, and clear project execution plans aligned with evaluation criteria