Alternative Fuels
Advancing Alternative Fuels Innovation in New York
On December 16, 2025, The New York State Energy Planning Board voted to approve the final State Energy Plan 
, which provides broad program and policy development direction to guide energy-related decision making within New York State and includes an outlook through 2040. The plan identifies low-carbon alternative fuels—including biofuels, waste-derived fuels, e-fuels, and clean hydrogen—as essential complements to electrification in hard-to-electrify sectors such as aviation, maritime, long-haul trucking, and certain industrial processes. These fuels are also expected to play a targeted role in specific parts of the power generation system, providing dispatchable, low-carbon supply to support grid reliability, meet peak demand, and enable seasonal or long-duration energy storage.
As New York transitions to a clean energy economy, NYSERDA will invest in the research, development, and demonstration of alternative fuels as part of the State’s decarbonization strategy.
2026 RGGI Operating Plan
Based on New York's Regional Greenhouse Gas Initiative Operating Plan Amendment for 2026 [PDF], NYSERDA has allocated $37.5 million from FY2024–2029 to the Advanced Fuels Innovation program area. RGGI funding will be used to continue supporting research and technology studies and demonstration projects for advanced fuels, including methanol, renewable natural gas, renewable diesel, and sustainable aviation fuels. The RGGI investments will focus on supporting fuel production from waste resources generated in New York State and enabling first-time demonstrations in the state for low-carbon fuel products that can help decarbonize hard-to-electrify sectors, such as heavy-duty transportation, industry, aviation, maritime, and low-capacity factor firm resources.
Past Activities
RFI 5985
On March 28, 2025, NYSERDA issued Request for Information (RFI) 5985 to gather stakeholder input that will help shape a future competitive solicitation (PON) for pilot projects and research and development projects to produce advanced clean fuels such as renewable diesel, SAF, RNG, etc. in New York State.
Details of the RFI
PON 6031
On August 20, 2025, NYSERDA announced up to $7.8 million is available through Program Opportunity Notice (PON) 6031 . to support waste-to-low-carbon fuel pilot and demonstration projects. This funding will advance the viable pathways for producing low-carbon fuels such as Sustainable Aviation Fuel (SAF), Renewable Diesel (RD), Renewable Natural Gas (RNG), or clean methanol from in-state feedstocks including municipal solid waste organics, landfill gas, wastewater sludge, agricultural residues, and captured CO₂.
Reports
Feasibility Study for Renewable Fuel Production from Waste Resources in New York State
NYSERDA released the Feasibility Study for Renewable Fuel Production from Waste Resources in New York State. This comprehensive report was developed in collaboration with the National Renewable Energy Laboratory (NREL) with the following information.
- Waste resources in New York State
- Existing waste management and fuel distribution infrastructure
- Conversion pathways and technical landscape
- Techno-economic analysis
- Emission reduction potential
While it does not recommend policy, the study could be used by a variety of public and private entities to inform them about their work when considering the potential development of alternative fuel projects in New York State.
Access the Full Report or Summary
- Full report [PDF]
- Summary [PDF]
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Find Partners
If you’d like to register your entity and/or find collaboration partners, please visit the Alternative Fuels Partners table.