Biofuel and SAF Production Funding

Switchgrass harvest

The table below displays grants, tax credits, loans, and other funding that support biofuels and SAF production in the United States.

 

We strive to provide accurate and timely information on grants. However, please note that we have not reviewed these funding sources in detail. Grants listed may or may not be currently available or applicable to your needs. Also note that many federal grant programs have been paused indefinitely pending DOGE and White House Administrative review. Federal programs listed have been available historically through 2024.

 

This table is updated monthly.

 

For a personalized funding strategy, please contact us using the form on our Home Page.

 

ProgramFunderFunder TypeFunding TypeUsesEligibilityGeographyDeadlinesAward/IncentiveInfo LinkQA Notes
Clean Fuel Production CreditInternal Revenue ServiceFederal GovernmentTax IncentiveProduction and sale of qualifying SAF and other low-emission transportation fuelsRegistered U.S. clean-fuel producers operating qualified facilitiesUnited States and U.S. territoriesAvailable for qualifying fuel produced and sold through December 31, 2029Emissions-based per-gallon or gallon-equivalent income tax credit; after 2025, generally calculated from a $0.20 or $1.00 applicable amount, adjusted for inflation and multiplied by the fuel’s emissions factorOfficial program pageProducer must register with the IRS before production. Fuel produced after 2025 must use feedstock grown or produced in the U.S., Canada, or Mexico. Actual benefit can exceed $50,000 only at sufficient production volume.
Biorefinery, Renewable Chemical, and Biobased Product Manufacturing ProgramUSDA Rural DevelopmentFederal GovernmentLoan GuaranteeDevelopment, construction and retrofitting of commercial-scale advanced-biofuel biorefineriesEligible lenders applying on behalf of individuals, businesses, public entities, governments, tribes, cooperatives, universities and other qualified borrowersUnited States and eligible territoriesLetter of intent: September 1, 2026; Phase 1 application: October 1, 2026Loan guarantee up to $250 million; total federal participation cannot exceed 80% of eligible project costsOfficial program pageStrong fit for commercial advanced-biofuel or SAF facilities. Significant borrower cash equity is required, and the application uses a two-phase lender-driven process.
Advanced Biofuel Payment ProgramUSDA Rural DevelopmentFederal GovernmentOtherProduction of eligible advanced biofuels derived from renewable biomass other than corn-kernel starchAny entity producing and selling qualifying advanced biofuel in the U.S.United StatesClosed/Recurring; expected October 1–31, 2026 based on the stated annual enrollment periodQuarterly production payments; no published minimum or maximumOfficial program pageAward amount is undisclosed and depends on production, participating producers and annual appropriations. Blenders that do not produce the eligible fuel are ineligible.
Biofuels Production IncentiveNatural Resources CanadaFederal GovernmentOtherProduction of biodiesel and renewable diesel at eligible Canadian facilitiesEligible Canadian biodiesel and renewable-diesel producersCanadaContinuous intake through December 31, 2027Per-litre production incentive; total payment depends on eligible production and program termsOfficial program pageOpen as of July 2026. This is a direct production incentive, but the current program materials identified in the search do not establish a fixed minimum award per applicant. SAF does not appear to be directly covered.
Clean Fuels Fund – Building New Domestic Production CapacityNatural Resources CanadaFederal GovernmentLoan/FinancingConstruction, retrofit or expansion of commercial clean-fuel production facilities, including advanced biofuelsCanadian legal entities and eligible Indigenous-led applicants, subject to stream-specific requirementsCanadaUndisclosedCost-shared, conditionally repayable funding; amount varies by stream and projectOfficial program pageStrong capital-project fit, but applicants should confirm whether NRCan is presently accepting new submissions under the applicable stream. The broader fund has supported advanced biofuel and other clean-fuel production.
Clean Fuels Call for ProposalsNatural Resources Canada, Energy Innovation ProgramFederal GovernmentGrantPre-commercial RD&D, pilot and demonstration projects for clean-fuel production, transport and storage, including biofuelsCanadian for-profit and nonprofit entities, Indigenous organizations and, for transport/storage projects, provincial or territorial governmentsCanadaClosed; expected future cycle is undisclosedGenerally $500,000–$2 million for R&D and $2 million–$5 million for pilot projects; contribution rates vary by project and applicantOfficial applicant guideThe 2025 call is closed, but it remains a recent, program-specific opportunity with clear biofuel eligibility. Universities may participate as partners but generally cannot be the lead recipient under the clean-fuel production focus area.
Alternative Fuels Incentive GrantPennsylvania Department of Environmental ProtectionStateGrantBiofuel vehicles, fleet conversions, refueling equipment, research, training and demonstrationPennsylvania businesses, nonprofits, municipalities and school districtsPennsylvaniaOctober 7, 2026, 12:00 p.m. ETUp to $300,000 per application and $500,000 per applicant across applicationsOfficial program pageEligible fuels expressly include biodiesel, ethanol, methanol and other advanced biofuels. Approximately $5 million is available for 2026. Project-specific cost-share and award calculations apply.
Renewable Fuel Infrastructure ProgramIowa Department of Agriculture and Land StewardshipStateGrantInstallation, replacement or conversion of ethanol and biodiesel retail or terminal infrastructureIowa motor-fuel retail sites and biodiesel terminal facilitiesIowaUndisclosed; applications accepted for future board meetingsUp to $75,000 for ethanol projects; up to $50,000 for biodiesel retail projects; up to $100,000 for qualifying biodiesel terminal projectsOfficial program pageCurrent application materials were updated in April 2026. A five-year commitment is required. The July 29, 2026 board-meeting deadline passed on July 9, but the agency directs applicants to submit for future meetings.
AGRI Biofuels Infrastructure GrantMinnesota Department of AgricultureStateGrantEquipment at service stations to expand sales of ethanol blends containing at least 15% ethanolMinnesota retail service stations meeting ownership and site-count requirementsMinnesotaClosed/Recurring; expected spring 2027 based on recent annual cycles$5,000–$199,000 per projectOfficial program pageFY27 applications closed June 2, 2026. At least 35% cash match is required. The program expected to award $4.7 million in the latest cycle. This is an ethanol-infrastructure opportunity, not SAF production funding.
Low Carbon Fuel Standard Initiative Agreement ProgramBritish Columbia Ministry of Energy and Climate SolutionsProvinceOtherSAF production, supply, infrastructure and related low-carbon fuel projectsProject proponents capable of satisfying the Low Carbon Fuels Act and achieving negotiated milestonesBritish Columbia; projects must support the province’s low-carbon fuel objectivesRolling for SAF project descriptionsNegotiated, performance-based compliance credits; amount undisclosedOfficial program pageCurrently accepting SAF proposals only. Credits are awarded after major milestones and may be traded or used for compliance. Applicants initially submit a concise project description rather than a full application.
Oregon Clean Fuels ProgramOregon Department of Environmental QualityStateOtherProduction, import and supply of ethanol, biodiesel, renewable diesel and other low-carbon transportation fuelsOregon fuel producers, importers and other registered fuel providersOregon fuel marketRolling program participation and annual compliance reportingTradable credits based on fuel volume and carbon intensity; value and total incentive are variableOfficial program pageIn-state transportation-fuel producers and importers of ethanol, biodiesel and renewable diesel must participate. Credits can be sold, but the program does not guarantee a $50,000 return.
Washington Clean Fuel StandardWashington State Department of EcologyStateOtherProduction and supply of ethanol, biodiesel, renewable diesel and other low-carbon transportation fuelsRegulated fuel suppliers and registered opt-in low-carbon fuel producersWashington fuel marketRolling registration; annual reporting and complianceTradable credits based on fuel carbon intensity and quantity; value and total incentive are variableOfficial program pageBiofuels below the applicable annual carbon-intensity standard can generate credits. Participation fees apply. This is a market incentive rather than an upfront grant.
Low Carbon Fuel StandardCalifornia Air Resources BoardStateOtherProduction and supply of SAF, ethanol, biodiesel, renewable diesel and other low-carbon transportation fuelsCertified fuel-pathway holders, producers, importers and reporting entities supplying qualifying fuels into CaliforniaCalifornia fuel marketRolling registration and fuel-pathway applications; periodic reporting deadlinesTradable credits based on fuel carbon intensity and volume; total value variesOfficial program pageSAF has been eligible to generate LCFS credits since the 2018 amendments. The revised benchmarks implemented in 2025 also include jet-fuel credit calculations. Revenue is market-dependent and not guaranteed to exceed $50,000.
Clean Transportation Fuel ProgramNew Mexico Environment DepartmentStateOtherProduction or import of ethanol, biomass-based diesel, renewable diesel, renewable naphtha, biomethane and other low-carbon fuelsBusinesses and organizations producing, importing or supplying qualifying transportation fuelsNew Mexico fuel market, excluding Tribal lands unless participation is established by agreementRolling; alternative fuel-pathway applications accepted beginning July 1, 2026Tradable credits based on carbon intensity and fuel volume; total value variesOfficial program pageThe first compliance period began April 1, 2026. Temporary pathway applications are reviewed on a rolling basis. Registration and annual participation fees apply.
Sustainable Aviation Fuel Tax CreditMinnesota Department of RevenueStateTax IncentiveProduction or blending of qualifying SAF sold for aircraft departing from Minnesota airportsTaxpayers producing SAF in Minnesota or blending SAF with aviation fuel in MinnesotaMinnesotaAvailable for qualifying tax years, subject to annual certificate allocation and statutory fundingRefundable credit of $1.50 per qualifying gallonOfficial statuteA taxpayer may claim the credit for either production or blending, but not both. SAF must be sold for use in an aircraft departing from a Minnesota airport. The benefit exceeds $50,000 at more than approximately 33,333 qualifying gallons.
Biofuels PACE ProgramBank of North DakotaStateLoan/FinancingReal property, equipment, facility expansion and working capital associated with biodiesel, ethanol and green-diesel productionQualified North Dakota biodiesel, ethanol and green-diesel production facilities; participating lenders originate the loanNorth DakotaRolling, subject to available program funds and lender approvalInterest-rate buydown of up to $500,000 per borrower for an eligible biofuel project in a bienniumOfficial program pageFinancing is accessed through a local participating lender. Recipients cannot also receive regular PACE or Flex PACE assistance for the same project.
Reinvestment Payment ProgramSouth Dakota Governor’s Office of Economic DevelopmentEconomic Development AgencyGrantExpansion or modernization of qualifying large capital-investment projects, including ethanol-production facilitiesQualified South Dakota businesses making eligible capital investments and meeting program requirementsSouth DakotaApply before construction or purchase commitments; board consideration occurs through scheduled funding meetingsPerformance-based grant tied to reinvestment-payment eligibility and project costs; amount variesOfficial program informationThe program remains active: in March 2026, South Dakota approved an ethanol facility for up to approximately $1.5 million. Eligibility is project-specific and generally favors substantial capital investments rather than early-stage R&D.
Future Fuels ChallengeFuel Innovation FundNonprofitGrantBiofuel, synthetic-fuel and e-fuel production; biogenic feedstock co-processing; refinery and fuel-production emissions reduction; clean-fuel infrastructureCanadian technology developers, regulated fuel suppliers, non-regulated entities and organizations advancing clean transportation-fuel supplyCanadaClosed/Recurring; expected spring 2027 based on the program’s stated annual competition model$1 million–$10 million per projectOfficial program pageThe inaugural $50 million competition launched April 22, 2026, and closed June 10, 2026. Biofuel production is expressly eligible. Future annual calls remain subject to available Clean Fuel Regulations compliance contributions.
Contributor Reinvestment ProgramFuel Innovation FundNonprofitGrantBiofuel production or use, fuel switching, refinery co-processing, clean heat and power, carbon capture, process optimization and other transportation-fuel carbon-intensity reductionsRegulated primary fuel suppliers that contributed compliance payments to the Fuel Innovation FundCanadaRollingUndisclosed; project funding is generally limited by the applicant’s available contributor account and program approvalOfficial program pageNarrow eligibility: this is not open to general technology developers unless they qualify as regulated contributors. Projects must deliver measurable lifecycle carbon-intensity or greenhouse-gas reductions in Canada.
Agriculture & Environment ProgramAlberta InnovatesOtherGrantApplied R&D, technology development, demonstration and deployment involving bioenergy, biomass conversion, waste-derived fuels and circular bioindustrial technologiesBusinesses, technology developers, universities, nonprofits, municipalities, public entities, researchers and other qualified applicantsAlberta; applicants may be based elsewhere but must demonstrate a clear benefit to AlbertaRollingUndisclosedOfficial program pageProjects generally must fall within TRL 3–7. The Bioindustrial & Circular Innovation focus expressly includes bioenergy, biomass and waste-stream conversion. Applicants must contact a program adviser before submitting an expression of interest.
Sustainable Aviation Fuel Tax Credit ProgramIowa Economic Development AuthorityStateTax IncentiveProduction of SAF in Iowa from qualifying Iowa-processed or Iowa-refined feedstockEligible businesses producing qualifying SAF in Iowa and entering into an agreement with IEDAIowaApplications available beginning July 1, 2026; qualifying production through December 31, 2035Refundable credit of $0.25 per qualifying gallon; up to $1 million per business per calendar yearOfficial program listingFeedstocks may include ethanol, corn oil, soybean oil, animal fats, used cooking oil and algae. Combined annual authorization with Iowa’s renewable-chemical credit is $10 million.
Sustainable Aviation Fuel Purchase CreditIllinois Department of RevenueStateTax IncentivePurchase of SAF by air carriers for use in IllinoisAir common carriers purchasing qualifying SAF for use in Illinois; sellers and producers participate through required certificationsIllinoisAvailable through December 31, 2032$1.50 per whole gallon of qualifying SAF purchasedOfficial program pageThis is a purchaser-side credit rather than a direct producer award. The benefit exceeds $50,000 at 33,334 qualifying gallons. State sales or use tax limitations and certification requirements apply.
Sustainable Aviation Fuel Tax CreditNebraska Department of RevenueStateTax IncentiveProduction and sale or use of qualifying SAF mixturesProducers of qualifying SAF subject to eligible Nebraska income, premiums or franchise taxesNebraskaFuture cycle: applications begin July 1, 2027; credit applies to tax years beginning January 1, 2027$0.75 per gallon plus $0.01 for each percentage point of lifecycle emissions reduction above 50%, up to an additional $0.50 per gallonOfficial legislative-change pageNonrefundable credit. Maximum rate is $1.25 per qualifying gallon. An applicant would need at least 40,000 gallons at the maximum rate, or approximately 66,667 gallons at the base rate, to reach $50,000.
Sustainable Aviation Fuel Production Facility CreditColorado Energy OfficeStateTax IncentiveConstruction, reconstruction or installation of SAF production and directly related distribution facilitiesColorado taxpayers that are aviation businesses, SAF producers or airports constructing qualifying facilitiesColoradoAvailable for qualifying facilities placed in service during tax years 2024–2032Refundable credit equal to 30% of qualified costs for construction beginning in 2024–2026; 24% in 2027; 18% in 2028; and 12% in 2029–2032, subject to annual statewide capsOfficial state program reviewAnnual statewide certificate authority is $2 million in 2025 and 2026 and $3 million annually in 2027–2032. Facilities must generally maintain at least 60% SAF production or distribution for three consecutive years to avoid recapture.
Advanced Biofuel Production Incentive ProgramMinnesota Department of AgricultureStateOtherCommercial-scale production of qualifying advanced biofuels from cellulosic biomass, sugar or starchMinnesota production facilities meeting minimum production, feedstock, operating-date and RFS-related requirementsMinnesotaUndisclosed; payments are available to qualified enrolled producers while appropriated funding remains$2.1053 per MMBtu-equivalent from cellulosic biomass and $1.053 per MMBtu-equivalent from sugar or starch; annual eligible production capped at 2.85 million MMBtu-equivalent per producerOfficial program pageFacility must meet a quarterly production threshold of 23,750 MMBtu-equivalent. This is primarily useful to existing qualifying facilities; new facilities that missed the program’s statutory commencement deadline may be ineligible.
Project Acceleration – FEED FundingCanada Infrastructure BankOtherLoan/FinancingFront-end engineering and design for large clean-fuel and other energy-transition infrastructure projectsPrivate-sector project sponsors with Canadian projects that are sufficiently ready to enter FEED and have a credible path to final investment decisionCanadaRolling/contact-drivenFinancing amount undisclosed; part of a $500 million project-acceleration allocationOfficial program pageClean fuels are explicitly eligible. Best suited to large, commercially oriented SAF or biofuel facilities with low aggregate technology risk, long development timelines and a clear commercial proposition.
Clean Industry FundBritish Columbia Ministry of Energy and Climate SolutionsProvinceGrantIndustrial emissions-reduction equipment, clean-technology pilots and demonstrations, and related feasibility or engineering studiesB.C. regulated industrial operations and eligible project partnersBritish ColumbiaClosed/Recurring; expected spring 2027 based on the 2025 and 2026 intake patternEmissions Performance stream: up to the lesser of $10 million or 50% of eligible expenses; other streams have stream-specific cost-share limitsOfficial program pageBiofuel or SAF projects are not automatically eligible; the project must reduce emissions at a covered B.C. industrial operation. The 2026 Emissions Performance, Innovation Accelerator and Feasibility Studies streams closed between May 22 and June 26, 2026.
Renewable Energy ProgramNorth Dakota Industrial CommissionStateGrantBiofuel and advanced-biofuel research, development, demonstration, commercialization, marketing and related industrial-use technologyBusinesses, universities, research organizations, public entities and other qualified project sponsors capable of providing matching fundsNorth Dakota; project must advance or use North Dakota renewable-energy resources or provide a material state benefit1-Aug-26Amount varies; recent individual requests and awards have reached $500,000, with $1 million awarded across the March 2026 grant roundOfficial program page (North Dakota Industrial Commission)Biofuels and advanced biofuels are expressly eligible. Dollar-for-dollar non-state matching funds are generally required. Strong fit for FEED, pilot, demonstration and commercialization projects rather than routine facility operations.