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Solugen plant to receive $15M in DEED funding

MARSHALL — A $213 million federal loan won’t be the only support for the construction of a new chemical plant in Marshall. On Thursday, an announcement from the Minnesota Governor’s Office said an additional $15 million in Minnesota Department of Employment and Economic Development funding will also go toward Solugen’s Bioforge Marshall plant.

Solugen, a Texas-based company, broke ground for Bioforge Marshall in April. The Bioforge will use corn sugar from the Archer Daniels Midland plant in Marshall to make chemicals that would normally be produced from petroleum. Doing so will mean fewer carbon emissions, Solugen founders said.

This week, the U.S. Department of Energy said the project had received a conditional commitment for a $213.6 million loan to finance construction.

The Governor’s Office said an additional $15 million would come from the Minnesota Forward Fund, a new DEED program Gov. Tim Walz signed into law last year. Funding for Bioforge Marshall will be the Minnesota Forward Fund’s second award, a news release said.

The Minnesota Forward Fund will invest $400 million in business growth in Minnesota, and will provide matching funds for companies seeking federal resources, the release said.

“This investment in sustainable manufacturing is a major win for Minnesota and a big step towards our goal of carbon free electricity by 2040,” Walz said. “Solugen’s expansion will help reduce greenhouse gasses while creating jobs and placing Minnesota at the forefront of biotechnology and biomanufacturing. With this partnership we’re ensuring a greener future and putting Minnesota on the map as a great place to live, work, and raise a family.”

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