Request for Information
Earlier this year, we asked eligible cooperatives and other interested stakeholders to respond to a request for information (RFI) to help us:
- Assess the business readiness of the green fertilizer industry in Minnesota.
- Design a new Green Fertilizer Grant Program.
We’re currently reviewing that information and will post updated details on this page.
Background and overview
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.
Green Fertilizer Grant Program requirements included in the Minnesota Legislature 2023 appropriation:
- Eligible entities are limited to agricultural or rural electric cooperatives organized under Minnesota Statutes chapter 308A or 308B.
- Cooperative members must have long-term agreements to purchase green fertilizer from the production facility.
- Cooperative members must obtain training in nutrient management best practices.
Green Fertilizer Process
- Renewable energy is created from solar and wind.
- The energy powers an electrolyzer which splits water (H20) into oxygen (O2) and hydrogen (H2).
- At the same time, a process of air separation gathers nitrogen (N2) and is stored with the hydrogen (H2) collected from electrolysis.
- The hydrogen and nitrogen are combined into ammonia (NH3) at the plant, which can then be used for other products like:
- Fertilizer
- Energy storage
- Ammonia for shipping fuel
- Renewable chemicals
