Initiative Will Reduce Emissions in Hard-to-Electrify Sectors Including Transportation and Industry
The New York State Energy Research and Development Authority (NYSERDA) today announced $8 million is now available to advance innovative alternative fuel solutions in New York through the State’s Advanced Fuels & Thermal Energy program. This initiative supports the development of resources and infrastructure for low-carbon fuels, such as clean hydrogen or ammonia, which can reduce emissions in hard-to-electrify sectors of the economy, such as heavy-duty transportation and industry, or provide zero-emission backup power.
NYSERDA President and CEO Doreen M. Harris said, “Investing in emerging fuels shows promise to reduce reliance on fossil fuels in transportation, manufacturing and other energy-intensive industries. NYSERDA is doing its due diligence by exploring the best concepts and designs to integrate clean hydrogen, ammonia and other fuels to provide zero-emission energy to reach areas of our economy that are hard to electrify.”
Public Service Commission Chair and CEO Rory M. Christian said, “This funding recognizes that advancing the deployment of alternative fuels can address a critical technological gap and strengthen the state’s economy. Supporting innovation which targets hard-to-electrify uses and sectors is in line with Governor Hochul’s ‘all-of-the-above’ energy policy.”
NYSERDA’s competitive Large-Scale Non-Drop-In Alternative Fuel-Based Resources and Infrastructure solicitation seeks eligible proposals from individuals or teams of developers, firms, manufacturers and researchers to develop, pilot, or demonstrate clean fuels including hydrogen, ammonia, or other alternative fuel projects requiring new or upgraded equipment or infrastructure for production, distribution and storage.
NYSERDA will accept proposals in two technical areas: (1) Large Scale Alternative Fuel-Based Resources, such as multi-megawatt fuel cells and (2) Alternative Fuel Cell Infrastructure, including fuel production, storage, and distribution systems. Funding is available in two categories: (1) Product Development or (2) Pilot and Demonstration.
Proposals must be submitted with the selection of one primary technical area and one funding area to be considered, and will be evaluated based on technical innovation, project plan, budget, risks, market plan, team capability, and benefits to New York State, including to disadvantaged communities as identified by the Climate Justice Working Group. Projects must demonstrate compliance with applicable safety, regulatory, and industry standards and have a minimum of 50% cost-share from non-NYSERDA funding sources.
Proposals are due by September 28, 2026, by 3:00 p.m. ET. A complete list of all eligibility rules and evaluation criteria can be found in the solicitation summary on NYSERDA’s website.
Additionally, all applicants have the option of submitting a Letter of Intent to NYSERDA to receive feedback on the eligibility, not merits, of their proposal prior to submitting a final version. Proposers interested in submitting the optional Letter of Intent must do so any time prior to September 7, 2026, by 3:00 p.m. ET.
Today’s announcement supports NYSERDA’s Innovation and Research (I&R) program, which invests over $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 over 900 companies that have helped make more than 300 products commercially available for consumers, businesses and utilities.
Funding for this program is provided through the New York State Public Service Commission’s 2025 Innovation and Research Order, which funds statewide clean energy innovation and research programs from 2026 through 2030.
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 40 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy, including in the energy, buildings, transportation, and waste sectors. The State is also working to disburse the historic $2 billion Sustainable Future Program, which will deliver targeted funding to lower emissions, reduce household energy costs, and spur green job growth.