Hochul Announces $27 Million for Alternative Fuel Projects in New York

NEW YORK STATE – Governor Kathy Hochul announced $27 million in available funding to advance alternative fuel solutions in New York, according to a November 5, 2026 release from the New York State Energy Research and Development Authority (NYSERDA). The governor also announced nearly $10 million awarded to five projects to develop, pilot and enhance the safety of alternative fuel technologies.

NYSERDA said the funding aims to reduce emissions in hard-to-electrify sectors such as aviation, heavy-duty freight, maritime transportation, rail and industrial operations, while supporting backup power and grid reliability. The funding is available through its 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

The competitive Drop-in Alternative Fuels Innovation Projects solicitation seeks proposals from developers, technology firms, manufacturers and research organizations. Eligible finished fuel products include sustainable aviation fuel, renewable natural gas, renewable diesel, low-carbon methanol and renewable propane. Ammonia, raw biogas, biodiesel and hydrogen are not eligible finished fuel products under this solicitation.

NYSERDA will accept proposals in three categories:

• Category A – Pilot: 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: 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: Support development-stage activities 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, and include a host site and a prospective offtake or end-use partner. Funding may cover fuel production from initial feedstock to the finished fuel transfer point, as well as 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 sources.

Proposers are strongly encouraged to submit a Letter of Intent to Propose as early as possible. NYSERDA said it will respond within three weeks of receipt regarding a project’s eligibility. Rolling submissions are being accepted until December 31, 2029, at 3 p.m. Eastern Time, or until all funds are committed. Details and associated documents are available through NYSERDA’s website.

Five projects awarded funding

Separately, NYSERDA awarded approximately $10 million to five sustainable aviation fuel and clean hydrogen projects. The agency said all projects are awarded to New York companies and/or involve development and demonstrations in New York.

• American Institute of Chemical Engineers’ Center for Hydrogen Safety: $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: $200,000 to build department-wide capacity to respond safely to hydrogen emergencies, including monitoring equipment and curriculum for existing training programs.
• Hydroplane, Ltd.: 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: More than $4 million to build and operate a pilot plant at Noblehurst Farms in Pavilion, New York, converting waste biogas into sustainable aviation fuel using NGV Earth’s patented conversion process.
• SWITCH Maritime LLC: More than $2.5 million to design, assemble and demonstrate a tug-propelled barge platform carrying 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.”

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 said its Advanced Fuels and Thermal Energy Storage Program invests in optimizing technologies intended to decarbonize hard-to-electrify sectors, improve grid resiliency and reduce pollution statewide, including in underserved communities.

The announcement supports NYSERDA’s Innovation & Research program, which the agency says invests more than $96 million annually to attract energy innovators, reduce risk for private investors and remove barriers to clean energy adoption. NYSERDA reports $15 in additional investment for every $1 spent, partnerships with more than 900 companies and more than 300 products made commercially available for consumers, businesses and utilities.

Funding comes through the Regional Greenhouse Gas Initiative and the Clean Energy Fund.

The release also describes the state’s Clean, Highly Affordable, Reliable Grid Expansion (CHARGE) agenda as a plan to reduce consumer costs, hold energy companies accountable, build clean energy at scale, modernize the grid and grow a clean economy with family-sustaining jobs. It identifies the Ratepayer Protection Plan, transmission buildouts and a new 8.4-gigawatt “Nuclear Backbone” as initiatives intended to support an affordable, reliable, zero-emission grid.

Source: NYSERDA Press Office, November 5, 2026.