The U.S. Department of Agriculture (USDA) Rural Development, under the Inflation Reduction Act initiated by President Biden, has invested over $100,000 to enhance the availability of domestic biofuels in North Dakota. This investment aims to provide Americans with cleaner fuel options at the pump while promoting the use of renewable energy sources.
Rural distributors in North Dakota, Carrington and Park River, will receive grant funds to boost ethanol production by over 400,000 gallons annually. These investments in infrastructure upgrades, particularly accessing higher-blend biofuels, lower costs for consumers and provide a stable market for agricultural producers.
The Higher Blends Infrastructure Incentive Program (HBIIP), launched by USDA in December 2022, made $50 million available to expand the use and availability of higher-blend biofuels. As part of this program, the announcement includes the first 59 infrastructure projects to receive a total of $25 million in grant funds. USDA has announced that starting in July, they will be accepting applications for $450 million in grants through HBIIP.
In North Dakota, two projects have been awarded grants:
Northdale Oil Company: A $41,163 grant will support the creation of infrastructure and the expansion of renewable fuel sales and usage. This project involves the installation of two E15 dispensers at a fueling station in North Dakota, specifically in Park River. It is estimated that this project will increase ethanol sales by 290,072 gallons per year.
Arrowhead Prairie Co-op: An $85,325 grant will be utilized to establish infrastructure and expand the sales and use of renewable fuels. This project will involve the replacement of two E15 dispensers, four E85 dispensers, and five ethanol storage tanks at a fueling station in North Dakota, specifically in Carrington. The estimated impact of this project is an increase in ethanol sales by 149,648 gallons per year.
The HBIIP program aims to increase the availability of higher blends of ethanol and biodiesel derived from U.S. agricultural products by sharing the costs of building and retrofitting biofuel-related infrastructure. Grants can cover up to 75% or $5 million of the total project costs, encouraging facilities to transition to higher-blend fuels exceeding 10% for ethanol and 5% for biodiesel.
USDA Rural Development invests in infrastructure, business development, housing, community facilities, and high-speed internet access to improve rural areas' economic opportunities, job creation, and quality of life. This investment contributes to a resilient food production system, equitable access to healthy food, and rural economic growth.
Photo Credit: shutterstock-dickgage
Categories: North Dakota, Energy