NYSERDA provides $16m in funding for Hydrogen and Clean Fuel Program

June 11, 2024 - Owners Developers & Managers

New York, NY According to governor Hochul, more than $16 million is now available to advance innovation in clean hydrogen through the Hydrogen and Clean Fuel Program. This funding will support research, development and demonstration projects and also help leverage federal hydrogen funding opportunities, promoting the use of clean hydrogen in industrial processes, clean transportation, energy storage and for grid support. The announcement supports the state’s nation-leading Climate Leadership and Community Protection Act goal to transition to 100% zero-emission electricity by 2040. 

Administered by the New York State Energy Research and Development Authority (NYSERDA), this funding is available through two competitive opportunities under the Hydrogen and Clean Fuel Program, an $11 million RD&Amp;D solicitation, and a $5 million rolling solicitation that can provide cost share support for entities applying for federal hydrogen funding for New York-based projects. Environmental justice and disadvantaged community stakeholder perspectives have been instrumental in shaping the areas of focus for the solicitations.

NYSERDA president and CEO Doreen Harris said, “Meeting New York’s ambitious emissions reduction goals requires an equally bold approach to supporting innovation and new technologies, which is demonstrated by the state’s ongoing investment in clean hydrogen research and development. As the most abundant element in the universe, hydrogen is a natural solution that provides fuel for the sun and holds the same powerful potential for the clean energy transition.”

Applicants for both solicitations may be comprised of single entities or teams and must address one of the five technical challenges ranging from industrial applications for clean hydrogen to hydrogen fuel cell electric vehicles. 

Proposals will be accepted in the following categories: 

Product Development – Advance efforts that are crucial to the development of a marketable technology product, system, strategy, or service and any testing or validation of an innovation that is not already commercially available and may lead to the commercialization of products manufactured in New York State. 

Pilot and Demonstration Projects – Demonstrate and test innovative technologies, systems, strategies, or services that require testing to reach commercialization or are already commercially available but have not yet gained industry acceptance or significant deployment in New York State. 

“New York is taking the lead to build a clean hydrogen ecosystem and growing the nascent industry,” governor Hochul said. “As we continue to foster the green economy, advancing alternative fuels is an important way to reduce emissions economy-wide and create new clean energy job opportunities.”

This is the second round of funding being offered for research, development and demonstration projects and applications will be accepted through 3:00 p.m. on July 15, 2024. Proposals that were received in round one are being evaluated and awards are anticipated in the third quarter of 2024. 

Applications for the cost share funding opportunity will be accepted on a first come, first served basis through 3:00 p.m. on June 26, 2025.  

New York State Public Service commission chair Rory Christian said, “Developing new alternative fuels is a key component for our future clean-energy economy, and developing a clean-hydrogen system is part of that overall initiative. This critically needed funding through the Hydrogen and Clean Fuel Program will help develop and deploy new approaches for reducing emissions.” 

New York State Department of environmental conservation commissioner Basil Seggos said, “New York’s significant investments to meet the climate challenge are advancing research and development to complement the State’s sustained efforts to reduce fossil fuel use and support implementation of the Climate Leadership and Community Protection Act. Under Governor Hochul’s leadership, $16 million is now available to bolster research and innovation into clean hydrogen, aiding our transition to a clean energy economy and greener environment.” 

Hydrogen and low carbon fuels regional head DNV Amit Goyal said, “While tax credits included in the U.S. Inflation Reduction Act will significantly improve the economics of clean hydrogen projects, the reality is that individual states must also take direct action to accelerate domestic clean hydrogen production and use. Governor Hochul and NYSERDA deserve recognition for their bold efforts to accelerate the production and use of clean and reliable hydrogen power in New York. NYSERDA’s initiative for industrial process heat applications, high volume dense storage, supporting microgrids and enabling heavy duty transport is exactly the kind of state-level support that is needed to complement federal incentives and help further catalyze the hydrogen economy.” 

These initiatives were developed in alignment with the Climate Action Council’s Scoping Plan which identified the strategic use of low-carbon fuels such as clean hydrogen as an important means of decarbonizing sectors that are traditionally challenging to electrify. In addition, as proposed in NYSERDA’s Energy Storage Roadmap under consideration with the New York State Public Service Commission, as New York moves to decarbonize its electric grid with renewable energy, at least 18 gigawatts (GW) of zero-carbon, firm, dispatchable long duration energy storage capacity is required by 2050.  

NYSERDA’s Innovation Program is deploying $800 million over 10 years as direct investments via grants and wrap-around commercialization support. More than $680 million in private investments and $200 million in project finance capital have been enabled, and more than 450 innovative clean energy products have been commercialized as a result of NYSERDA’s technology and business development investments, including LED lighting systems, home appliances, longer-lasting batteries, and more efficient heating-and-cooling systems. 

Funding for these initiatives is through the State’s 10-year, $6 billion Clean Energy Fund (CEF) and the Regional Greenhouse Gas Initiative (RGGI).

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