West central Minnesota projects receive more than $2M in clean energy grants
June 28, 2025
ST. PAUL — The Minnesota Department of Commerce this week announced $15 million in clean energy grants for Minnesota electric cooperatives, businesses, nonprofits, Tribal governments, and other organizations, including more than $2 million to projects located in Kandiyohi, Swift and Renville counties.
The grants are issued via the State Competitiveness Fund Matching Funds Program, which awards state money to clean energy projects with federal grants that have a cost-sharing requirement, according to a news release from the department. This latest allocation of funds is part of the fourth round of selections. The program allocates money to projects that further Minnesota’s goal of 100% clean energy by 2040.
Three west central Minnesota companies are beneficiaries of a share of the funds: Kandiyohi Power Cooperative, Chippewa Valley Ethanol Company, and Renville-Sibley Cooperative Power Association.
Kandiyohi Power Cooperative is receiving a grant of $999,999 for a project to install a 6.5-megawatt solar array in eastern Kandiyohi County.
The array and infrastructure improvements have a total estimated cost of $2.5 million, according to a project summary from the Commerce Department.
Kandiyohi Power Cooperative estimates this project will allow it to produce 10% of its own energy from a renewable source.
Chippewa Valley Ethanol Company in Benson is also receiving $999,999 to replace three aging boilers with new models that can achieve 85% energy efficiency.
The new boilers will help the company operate at a higher capacity, producing an additional 7.5 million gallons of ethanol per year, according to the project summary.
With high-pressure boilers and an increased capacity, the company will be able to integrate a steam turbine generator to produce on-site electricity at the Benson facility, reducing reliance on coal power.
Renville-Sibley Cooperative Power Association is receiving $288,773 to convert 10 miles of overhead power lines to three-phase underground lines in a rural area outside Fairfax.
The State Competitiveness Fund Matching Funds Program was established in 2023 to help Minnesota entities develop clean energy projects by covering costs from federal awards they would otherwise be required to pay.
Over the course of the program, more than $69 million in funds have been reserved for 75 different projects, according to the news release. The average grant totals $800,000, with individual grants ranging from $29,000 to $10 million.
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