New York makes nearly $8 million available to support innovation in low-carbon fuels

The New York State Energy Research and Development Authority announced Aug. 20 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 is investing in alternative fuels that can enhance grid reliability and balance the electric load as energy demand increases,” said NYSERDA President and CEO Doreen M. Harris. “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 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 (EPC) 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 eFuels.

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 percent cost-share from non-NYSERDA funding sources.

The program has three phases:

• Phase 1—site selection, partnering with host site or feedstock partners, and a feedstock supply agreement.

• Phase 2—engineering design for the site selected, including safety and permitting review.

• Phase 3—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 said it reserves the right not to move forward based on its evaluation of each phase.

Proposals are due Jan. 22, 2026, by 3:00 p.m. Eastern time. 

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  Oct. 6 at 1:30 p.m. to 2:30 p.m. Eastern time to provide more explanation on the solicitation, project requirements and the application process.