New York Funds Alternative-Fuel Projects

Five projects will share nearly $10 million from a $27 million state pool for aviation fuel and hydrogen work.

Updated on Nov. 6, 2026 in Electric Vehicles

Isometric editorial illustration of a plain cylindrical storage tank and connecting pipe on a concrete pad in a flat field, representing state funding for hydrogen and alternative fuels. — New York has made $27 million available for alternative-fuel projects, awarding nearly $10 million to five projects in aviation, freight, and hydrogen work. AI Illustration. Upload story photo >

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Should New York spend public money on alternative fuel development?

New York has made $27 million available for alternative-fuel projects and awarded nearly $10 million to five projects. The funding, announced by Gov. Kathy Hochul, is administered by NYSERDA through its Advanced Fuels & Thermal Energy Research program.

Why it matters

The funding targets sectors that are difficult to electrify, including aviation, heavy-duty freight, maritime transportation, rail, and backup power for the electric grid. It is drawn from the Regional Greenhouse Gas Initiative and the Clean Energy Fund.

Noblehurst Green Energy received more than $4 million for a pilot plant in Pavilion, and SWITCH Maritime LLC received more than $2.5 million for a tug-propelled hydrogen barge to the Brooklyn Navy Yard. Hydroplane Ltd. received nearly $2 million to build a prototype hydrogen fuel cell-electric cargo watercraft.

The players

Kathy Hochul

Kathy Hochul is the Governor of New York who announced the alternative-fuel funding and awards.

NYSERDA

The New York State Energy Research and Development Authority is the state public benefit corporation that administers the funding through its Advanced Fuels & Thermal Energy Research program.

Noblehurst Green Energy

Noblehurst Green Energy is a company receiving more than $4 million to build and operate a pilot plant at Noblehurst Farms in Pavilion.

The details

Developers, technology firms, manufacturers, and research organizations may apply through the Drop-in Alternative Fuels Innovation Projects solicitation in pilot, demonstration, or first-of-a-kind commercial categories, each involving a New York site. Awards also went to the American Institute of Chemical Engineers' Center for Hydrogen Safety ($850,000 for training modules) and the Fire Department of the City of New York ($200,000 for hydrogen-emergency response). Ammonia, raw biogas, biodiesel, and hydrogen are not eligible as finished fuel products under the solicitation.

Thursday, Nov. 5, 2026: Gov. Kathy Hochul announced the $27 million funding and the five awards.
Dec. 31, 2029, 3 p.m. Eastern: Rolling application period closes or ends when all money is committed.
NYSERDA will respond within three weeks of receiving a letter of intent on project eligibility.

Roadmap

This award extends NYSERDA's Innovation & Research program, which invests roughly $96 million annually and attracts about $15 in additional investment for each program dollar. It directs that existing research model toward alternative fuels for sectors that battery-electric vehicles cannot easily serve.

Applications are accepted from developers, manufacturers, and research organizations, but awards require at least a 50% cost share from non-NYSERDA sources. For drivers and fleet operators, the projects point toward alternative fuels for aviation, freight, and maritime uses rather than immediate changes at the pump.

The takeaway

State funding is shifting toward fuels for sectors that batteries cannot easily electrify. Readers following clean transportation should watch whether the funded pilots reach commercial scale.

What happens next

Projects must submit a letter of intent, and NYSERDA will respond within three weeks on eligibility; the rolling application window runs until Dec. 31, 2029.