$27 Million Now Available to Advance Innovative Alternative Fuel Solutions in New York Application DEADLINE December 31, 2029 or until all funds are committed

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November 09, 2026

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(Office of the Governor, New York State) $27 Million Now Available To Advance Innovative Alternative Fuel Solutions In New York; Nearly $10 Million Awarded by NYSERDA to Five Projects to Develop, Pilot, and Enhance the Safety of Alternative Fuel Technologies

Governor Hochul announced today (November 6, 2026) that $27 million is now available through the New York State Energy Research and Development Authority (NYSERDA) to advance innovative alternative fuel solutions in New York State. The Governor also announced that nearly $10 million has been awarded to five projects to develop, pilot, and enhance the safety of alternative fuel technologies.

By funding innovative energy solutions, Governor Hochul is helping to decarbonize hard-to-electrify sectors of the economy such as aviation, heavy-duty freight, maritime, and the rail industry, and providing much needed back-up power. The funding is available through NYSERDA’s Advanced Fuels & Thermal Energy Research program.

“As New York confronts energy challenges no generation has faced before, these grants will help develop innovative fuel solutions that not only strengthen our energy independence but do so while reducing emissions, holding down costs, and preserving grid reliability,” said Governor Hochul. “By investing in emerging technologies and the infrastructure needed to bring them to market, we are building a cleaner, more resilient economy and making sure New Yorkers benefit from these advancements.”

NYSERDA President and CEO Doreen M. Harris said, “Advancing promising alternative fuels from concept to real-world application is critical to understanding their potential and accelerating deployment that can deliver meaningful benefits to New York’s economy. NYSERDA commends Governor Hochul's commitment to an 'all-of-the-above' energy strategy, and looks forward to working with these partners to pilot viable solutions and create a foundation for broader adoption across the state.”

Alternative Fuels Funding

Administered by NYSERDA, the competitive Drop-in Alternative Fuels Innovation Projects solicitation seeks eligible proposals from developers, technology firms, manufacturers and research organizations to develop projects that produce an eligible fuel product including sustainable aviation fuel, renewable natural gas, renewable diesel, low-carbon methanol and renewable propane. Ammonia, raw biogas, biodiesel and hydrogen are not considered eligible as the finished fuel product for this solicitation.

NYSERDA will accept proposals in one of three categories:

Category A – Pilot: funding to validate an integrated alternative fuel system in the field, moving from laboratory to engineering scale, at a specific New York State site.
Category B – Demonstration: funding to demonstrate an integrated alternative fuel system at a scale representative of a commercial facility, at a specific New York State site.
Category C – First-of-a-Kind Commercial Development: development-stage activity funding to advance a first-of-its-kind commercial project in New York State toward construction and commercial operation.

Proposals must demonstrate expertise in conversion technology, engineering and feedstock supply, along with a host-site and a prospective offtake or end-use partner. Funding can be applied to fuel production — from the initial feedstock to the finished fuel transfer point. It can also cover third-party analysis or certification testing to verify that the finished fuel meets specifications or regulatory limits. Projects must meet a minimum 50% cost-share requirement from non-NYSERDA funding sources.

Proposers are strongly encouraged to submit a Letter of Intent to Propose as early as possible. NYSERDA will respond within three weeks of receipt as to the eligibility of the project under this solicitation.

Rolling submissions are now being accepted until December 31, 2029, 3:00 p.m. ET or until all funds are committed. For additional details and associated documents, visit NYSERDA’s website .

Alternative Fuel Projects Awarded

In addition, NYSERDA has awarded approximately $10 million to five sustainable aviation fuel and clean hydrogen projects to help decarbonize hard-to-electrify sectors. All projects are awarded to New York companies and/or for development and demonstrations in New York.

The awarded projects include:

American Institute of Chemical Engineers’ Center for Hydrogen Safety: awarded $850,000 to develop hydrogen safety training modules for first responders and permitting officials in New York and beyond.
Fire Department of the City of New York: awarded $200,000 to build department-wide capability to respond safely to hydrogen emergencies, covering monitoring equipment, and curriculum for existing department training programs.
Hydroplane, Ltd.: awarded nearly $2 million to design and build a prototype emission-free, hydrogen fuel cell-electric cargo watercraft for bulk hydrogen transport on New York’s inland waterways.
Noblehurst Green Energy: awarded more than $4 million to build and operate a pilot plant at Noblehurst Farms in Pavilion, N.Y. that turns waste biogas into sustainable aviation fuel using NGV Earth’s patented conversion process.
SWITCH Maritime LLC: awarded more than $2.5 million to design, assemble, and demonstrate a tug-propelled barge platform to carry hydrogen from suppliers outside New York City to the Brooklyn Navy Yard.

Public Service Commission Chair Rory Christian said, “Commercializing novel emerging technologies is essential to meeting New York’s grid reliability and affordability challenges. The Public Service Commission applauds the forward-looking leadership of Governor Hochul and NYSERDA to support investments that give promising technologies a shot to realize their potential as clean solutions within the state’s all-of-the-above energy strategy. This process will allow these technologies to demonstrate their ability to enhance our economy and create new opportunities throughout the state.”

State Senator Kevin Parker said, “At the end of the day, this is about the people and communities we serve. We have a responsibility to think beyond today and invest in solutions that make energy more reliable, create opportunities, and protect the future of our families. New York has the ability to lead, but we must never lose sight of who this work is ultimately for.”

Renewable Natural Gas Coalition CEO and Founder Johannes D. Escudero said, “RNG Coalition appreciates Governor Hochul and NYSERDA’s recognition of and support for RNG’s role as an innovative and alternative fuel solution to sustainably capture and convert methane from organic waste streams into renewable fuel, heat and power.”

NYSERDA’s Advanced Fuels and Thermal Energy Storage Program actively invests in optimizing technologies that have the potential to decarbonize hard-to-electrify sectors, improve grid resiliency and reduce pollution statewide, including in underserved communities. More information about NYSERDA’s advanced fuel innovation work, including past and current activities, can be found on NYSERDA’s website.

Today’s announcement supports NYSERDA’s Innovation & Research (I&R) program, which invests more than $96 million per year to attract world-class energy innovators, reduce risk for private investors and remove barriers to clean energy adoption in New York State, leveraging $15 in additional investment for every $1 spent. NYSERDA has partnered with more than 900 companies that have helped make more than 300 products commercially available for consumers, businesses and utilities.

Funding for these initiatives is provided through the Regional Greenhouse Gas Initiative (RGGI) and the Clean Energy Fund (CEF).

CHARGE Agenda

The Clean, Highly Affordable, Reliable Grid Expansion (CHARGE) agenda is a comprehensive plan to keep the lights on and costs down for New Yorkers while achieving a reliable, zero-emission grid. The five-pronged strategy focuses on driving down consumer costs, holding energy companies accountable, building clean energy at scale, modernizing the state's aging grid, and growing a clean economy with family-sustaining jobs. Through bold initiatives like the Ratepayer Protection Plan, historic transmission buildouts, and a new 8.4-gigawatt "Nuclear Backbone," the CHARGE agenda ensures an affordable, resilient, and self-sufficient energy future that prioritizes everyday ratepayers while building a cleaner, more sustainable New York. READ MORE