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.
As we design a new green fertilizer grant program, we are also open for feedback during the development stage of the request for proposals (RFP) and any other considerations regarding the scoring criteria for RFP applications.
If this program is relevant to your work, submit your ideas using this Green Fertilizer RFP Feedback form by July 5, 2024.
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
