New York to Grant $7.8mn for Low-Carbon Fuels Application DEADLINE January 22, 2026

August 21, 2025

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by Cole Martin (Argus Media) The New York State Energy Research and Development Authority (NYSERDA) plans to award up to $7.8mn in grants to speed the deployment of innovative low-carbon fuels in the state.

The funds — which come from New York's quarterly sales of power plant carbon market allowances — are meant to cover some of the cost of one or two pilot projects that aim to turn in-state waste feedstocks into climate-friendly fuels. The goal is to "de-risk scale up" of innovative fuel pathways, NYSERDA said.

The grants are for fuels that can serve hard-to-electrify sectors or support grid reliability, excluding those targeting light-duty vehicles. And the agency wants to support less established pathways, explicitly barring fuels from conventional crops, renewable diesel and jet fuel made from hydro-processing oils and fats, and renewable natural gas from anaerobic digestion. Ammonia and hydrogen are separately ineligible.

Liquid-fuel pathways must produce at least 70pc fewer greenhouse gas emissions than petroleum alternatives, while renewable natural gas pathways must cut emissions by at least half. Potential waste feedstocks include municipal solid waste, landfill gas, wastewater sludge, agricultural residues, and captured carbon dioxide.

While funds can help other parts of the supply chain, such as feedstock collection, the goal is to support companies eyeing pilot projects that can make at least 1 USG/d of liquid fuel or at least 1 mmBtu/d of renewable natural gas. Proposals are due by 22 January 2026.

Alternative fuels are already produced at scale in the US from crop feedstocks like corn and soybeans as well as wastes like used cooking oil. But developers and investors have eyed more novel fuel types — including fuels from gasifying waste and electrofuels made from renewable electricity.

The sprawling energy and tax bill that President Donald Trump signed into law last month extends a federal tax credit for low-carbon fuels two additional years through 2029, providing some more certainty to early-stage clean fuel developers. But the incentive will also be less generous in other ways, stripping eligibility from fuels made from feedstocks outside North America and removing extra subsidies allowed this year for aviation fuels. READ MORE

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Nearly $8 Million Is Now Available To Support Innovation in Low-Carbon Fuels In New York (New York State)
$8M available to fund low-carbon fuel innovation in New York (FingerLakes1.com)

Excerpt from New York State: Alternative Fuel Technologies to Enhance Grid Reliability and Support the Clean Energy Transition

The New York State Energy Research and Development Authority (NYSERDA) today announced nearly $8 million is now available to support innovation in the development of low-carbon fuels in New York State. The competitive Waste to Low-Carbon Fuels Pilot and Demonstration solicitation supports innovation projects that pilot and scale converting waste feedstock from organic and inorganic discarded materials to energy in hard-to-electrify sectors of the economy. This funding helps make it more affordable to advance alternative fuel technologies that have the potential to lower emissions from transportation and industrial sectors and enhance electric grid reliability as part of the State’s clean energy transition.

NYSERDA President and CEO Doreen M. Harris said, “NYSERDA is investing in alternative fuels that can enhance grid reliability and balance the electric load as energy demand increases. Early-stage innovation is a valuable tool that benefits all New Yorkers by accelerating the adoption of technologies that ultimately help to lower emissions from hard-to-electrify sectors such as aviation, maritime and heavy-duty industrial processes."

The competitive Waste to Low-Carbon Fuels Pilot and Demonstration solicitation , offered through NYSERDA’s Advanced Fuels and Thermal Energy Storage Program, seeks qualified proposers to develop and commercialize efficient, economically viable, and scalable technologies that convert waste such as municipal solid waste organics, landfill gas, wastewater sludge, and/or agricultural residues into low-carbon fuels. Proposals will be accepted from eligible project teams composed of a technology provider and an engineering, procurement and construction firm, which must also secure letters of commitment from a host site partner, a feedstock partner, and an end user partner. Eligible fuels include sustainable aviation fuel, renewable natural gas, renewable diesel, clean methanol and e-fuels. Ammonia, biogas, and hydrogen are not considered eligible fuels for this solicitation.

Funding can be applied to activities ranging from the initial feedstock point to the transfer point of the finished fuel. It can also cover third-party analysis or certification testing to verify that the finished fuel meets specifications or regulatory limits. Projects must have a minimum of at least a 50% cost-share from non-NYSERDA funding sources.

The program has three phases:

Phase One: site selection, partnering with host site or feedstock partners, and a feedstock supply agreement.
Phase Two: engineering design for the site selected, including safety and permitting review.
Phase Three: building, commissioning, and operating the site including equipment, utility installation and performance.

Proposals must include complete scopes of work for all three phases including costs, based on size, technology and complexity of the project. NYSERDA reserves the right not to move forward based on its evaluation of each phase.

Proposals are due by January 22, 2026 by 3:00 p.m. E.T. A complete list of all eligibility rules and evaluation criteria can be found in the solicitation summary on NYSERDA’s website .

NYSERDA will host an informational webinar on October 6, 2025 at 1:30 p.m. to 2:30 p.m. E.T. to provide more explanation on the solicitation, project requirements, and the application process.

Renewable Natural Gas Coalition Vice President of Public Policy Sam Wade said, “RNG Coalition applauds all funding opportunities supporting waste-based fuels, which convert an environmental liability into a proven source of low-carbon energy."

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

For more than 50 years, NYSERDA has been a trusted and objective resource for New Yorkers, taking on the critical role of energy planning and policy analysis, along with making investments that drive New York toward a more sustainable future. NYSERDA’s Innovation and Research (I&R) program is deploying approximately $1.2 billion over 15 years as direct research investments and commercialization support. To date, more than $800 million in investments have supported more than 700 companies and made approximately 300 products commercially available to individuals, businesses, and utilities.

Funding for this initiative is through the Regional Greenhouse Gas Initiative.

New York State's Climate Agenda

New York State's climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.

NYSERDA

Since 1975, NYSERDA has been working to advance New York’s energy system and economy. As a public benefit corporation, NYSERDA has served as an objective source for information and technical expertise to drive innovation and investment. NYSERDA professionals have worked for the past 50 years to protect the environment and help New Yorkers increase energy efficiency, save money, and reduce reliance on fossil fuels. To learn more about NYSERDA’s programs and funding opportunities, visit nyserda.ny.gov. READ MORE