Biomass thermal energy is heat and electricity created through biomass combustion, gasification, or anaerobic digestion of organic material from plants and animals. The Minnesota Department of Agriculture (MDA) offers a production incentive program for production facilities.


To be eligible for the Biomass Thermal Energy Bioincentive Program, production facilities must:

  • have started production after July 1, 2015.
  • produce at least 250 million British thermal units (MMBtu) per quarter to enter the program and during each quarter of participation.

Payment Amount and Limits

Producers of biomass thermal energy will be reimbursed at a rate of $5.00 per MMBtu of production.

Facilities may blend cellulosic feedstock with other fuel, but only the percentage attributable to cellulosic material is eligible to receive payments.

Production using agricultural cellulosic feedstock of perennial or cover crop biomass is eligible for a 20 percent bonus payment for each MMBtu of biomass thermal energy produced.

Note: Total payments for an eligible producer may not exceed 30,000 MMBtu of production in a fiscal year.