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$8M available to fund low-carbon fuel innovation in New York

A fresh wave of state funding is up for grabs as New York looks to turn waste into cleaner fuel.

NYSERDA announced this week that nearly $8 million is now available to support pilot projects that convert waste into low-carbon fuels — part of an effort to cut emissions in transportation and industry while easing the strain on the electric grid.


The new funding opportunity, called the Waste to Low-Carbon Fuels Pilot and Demonstration solicitation, is aimed at hard-to-electrify sectors like aviation, maritime shipping, and heavy-duty industry. It targets projects that turn waste materials — like landfill gas, wastewater sludge, agricultural scraps, and solid waste organics — into renewable natural gas, renewable diesel, sustainable aviation fuel, methanol, or e-fuels.

Ammonia, biogas, and hydrogen aren’t eligible for this program.

“This is about helping early-stage fuel innovations scale up and deliver real results for New Yorkers,” said NYSERDA President and CEO Doreen M. Harris. “These fuels can lower emissions and support the grid as energy demand rises.”

How the program works

The funding will support three key phases of development:

  • Phase 1: Secure a host site, feedstock partner, and feedstock supply agreement
  • Phase 2: Complete engineering design and safety reviews
  • Phase 3: Build and operate the facility, including commissioning and performance testing

To qualify, project teams must include a tech provider and an engineering or construction partner, plus commitment letters from a host site, feedstock provider, and end user. At least 50% of total costs must be covered by non-NYSERDA sources.

Funding can also cover fuel certification testing and third-party analysis to make sure final products meet standards.

Proposals are due by January 22 at 3 p.m. ET, and full details are available on NYSERDA’s website. An informational webinar is scheduled for October 6 from 1:30 to 2:30 p.m. for anyone interested in applying.

Pushing toward a cleaner economy

The initiative is part of New York State’s broader climate plan, which aims for a fully emissions-free economy by 2050. That includes big pushes in clean energy, sustainable transportation, building electrification, and waste management — with at least 35% of benefits directed to disadvantaged communities.

Funding for the solicitation comes through the Regional Greenhouse Gas Initiative.

NYSERDA has invested more than $800 million into innovation and commercialization over the past 15 years, helping launch over 300 clean energy products across 700 companies. Its Advanced Fuels and Thermal Energy Storage Program continues to support pollution-cutting tech that benefits communities statewide.



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