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Committee hears request to extend funding for Minnesota Energy Alley innovation hub; supporters say program is delivering results
Summary
Senate File 761 would add RDA funding to sustain Minnesota Energy Alley, a public-private initiative supporting clean-energy pilot projects and startups. Committee heard testimony from initiative leaders and a startup whose demonstration project is scheduled for this summer; bill was laid over.
Senate File 7-61, carried by Senator Jeong, would provide additional funding from the Renewable Development Account (RDA) to continue Minnesota Energy Alley, a public-private initiative that supports clean-energy demonstration projects and startups.
Greg Mast, executive director of Clean Energy Economy Minnesota (SEAM), told the committee the initiative has used the initial $3 million appropriation from 2023 to support more than 20 Minnesota-based businesses and attract additional public and private investment. "Since its launch, Energy Alley has supported numerous pilot projects across the state, attracted more than $11,000,000 in public and private investment, and helped Minnesota-based startups secure over $9,000,000 in federal funding," Mast said.
Sean Jarvey, chief technology officer of Flow Environmental Systems, described a Minnesota-made CO2 heat-pump technology that the company plans to demonstrate at a Saint Paul training facility this summer. He said the pilot will help the company secure customers, train operators, and support potential local manufacturing. "This is why we are so grateful to Minnesota Energy Alley initiative for its crucial support at exactly the right time in our technology and business development," Jarvey testified.
Committee members asked about program structure, use of funds, and whether the state is "picking winners and losers." Mast said SEAM does not retain the appropriation funds; the program uses a typical administration fee (about 5%) and directs the majority of funds to demonstrations and entrepreneur training. He said the initiative targets technologies at Technology Readiness Level 6 (ready for commercial demonstration) and aims to catalyze follow-on private investment.
Members raised questions about overlap with other state programs, including the Minnesota Green Bank, and asked whether the initial $3 million appropriation has been spent. Mast said the initial appropriation will be fully committed and deployed by the end of calendar year 2025 and that the program has leveraged significant follow-on funding.
Senator Jeong and supporters argued the initiative helps startups move from prototypes to commercial deployments and keeps companies and economic benefits in Minnesota. The committee laid the bill over for possible inclusion pending further review of program details and budget priorities.
