Clean Hydrogen-Based Fuel Cell Resources

Clean Hydrogen-Based Fuel Cell Resources is sponsored by New York State Energy Research and Development Authority (NYSERDA). Supports development and demonstration of clean hydrogen-based fuel cell technologies in New York.

Hydrogen Fuel Cell -Based Firm Capacity and Industrial Application Design Program Opportunity Notice (PON) 5944 Up to $3. 7 million Available All, some, or none, of the available funds may be awarded. NYSERDA reserves the right to extend and/or add funding to the solicitation should other program funding sources become available.

Proposals Due: October 6th , 2025, by 3:00 PM Eastern Time The New York State Energy Research and Development Authority (NYSERDA) announces the availability of up to $3. 7 M to support hydrogen fuel cell -based firm capacity design for dispatchable zero -emission peaking power plants or industrial applications in New York State .

The solicitation’s objective is to determine the most viable technologies and help future investment and evaluation in this area . This solicitation includes the following two categories .

Each proposal should select one categor y based on the application that the proposals focus es on: Category A – Firm Capacity Category B – Industrial Application The table below shows the two phases with required cost share , period of performance , and expected Phase 1: Initial Scoping 25% of total project phase $250,000 6 months 2~4 awards Phase 2: Feasibility Study 25% of total project phase cost TBD 12 - 24 Months 1~2 awards *The cost share percentage is based on total project cost (NYSERDA share + proposer/external cost share), not solely NYSERDA’s contribution.

2 NYSERDA anticipates issuing two -phase contracts with a maximum, “not -to -exceed” amount for the first phase and the second phase of project funding only being awarded on a contingent basis as described below. NYSERDA reserves the right not to move forward w ith the second phase of an award, dependent on the Go/No -Go decision at the end of Phase 1 and availability of funding.

Proposers must include the full scope of both phases of the project in their proposal . The Phase 1 outcomes of each project will be evaluated to determine if Phase 2 of the project will continue to be funded. Phase 1 evaluations will occur on a rolling basis as each awarded contract’s Phase 1 is completed.

The figure below shows the expected schedule and phase -gate structure for projects awarded > Figure 1: Schedule and Phase -Gate Structure for PON 5944 # Project Teaming Arrangement At a minimum, a project team should consist of the following: • Engineering, Procurement, and Construction (EPC) firm, • an operator or owner for a peaking power plant or industrial facility in New York State , • a hydrogen fuel supplier or producer , and • original equipment manufacturer(s) for major equipment.

Applicants should succinctly describe the role, qualifications, experience, and capabilities of the proposed project team partners to execute the project plan successfully. Strong preference will be given to applicant teams that include Engineering, Procur ement, and Construction (EPC) firm(s) with experience in deploying hydrogen -based power generation or industrial projects .

Proposers wishing to find and collaborate with colleagues to perform research and submit proposals with may use the Advanced Fuels and Thermal Energy Innovation program’s partnering platform, the Hydrogen Partners List . 3 The platform is intended to help potential proposers find other teams with complementary capabilities when submitting proposals to NYSERDA Program Opportunity Notices issued by the Hydrogen and Clean Fuels Program.

Submitting teaming information is complet ely optional, and not required. By enabling and publishing the teaming partner list, NYSERDA is not endorsing, sponsoring, or otherwise evaluating the qualifications of the individuals and organizations. Online submission is preferable.

Proposers may submit Word, Excel, or PDF files (file formats include: csv, doc, docx, gif, jpeg, jpg, pdf, png, ppt, pptx, pps, ppsx, tif, txt, xls , xlsx, and zip). Individual files should be 100MB or less in file size. Proposal PDFs should be searchable and should be created by direct conversion from MS Word, or other conversion utility.

Files should not be scanned. For ease of identification, al l electronic files must be named using the proposer’s entity name in the title of the document. NYSERDA will also accept proposals by mail or hand -delivery if online submission is not possible.

For detailed instructions on how to submit a proposal (online or paper submission), click the link “Application Instructions and Portal Training Guide [PDF] ” located in the “Current Opportunities” section of NYSERDA’s website ( https://www. nyserda. ny.

gov/Funding -Opportunities/Current -Funding - Questions? Potential responders are advised that under New York State Finance Law Section 139 -j, communication on procurements can be made only to designated contact persons. The Designated Contacts for this Procurement are: • No communication intended to influence this procurement is permitted except by contacting Eliseo Curcio (Designated Contact) by e -mail at PON 5944 @nyserda.

ny. gov (for technical questions). • If you have contractual questions concerning this solicitation, contact Nancy Marucci (Designated Contact) at (518) 862 -1090, ext.

3335 or nancysolicitations@nyserda. ny. gov .

Contacting anyone other than the Designated Contacts (either directly by the proposer or indirectly through a lobbyist or other person acting on the proposer’s behalf) in an attempt to influence the procurement: (1) may result in a proposer being deemed a non -responsible offerer, and (2) may result in the proposer not being awarded a contract. * All proposals must be received by 3 p. m.

Eastern Time on the date noted above. Late, faxed, or emailed proposals will not be accepted. Incomplete proposals may be subject to disqualification.

It is the proposer’s responsibility to ensure that all pages have been included in the proposal. Please note: for online submission, there are required questions that you will have to answer in ad dition to uploading attachments and you should allot at least 60 minutes to enter/submit proposals. The online proposal system closes promptly at 3 p.

m. Eastern Time, files in process or attempted edits or submission after 3 p. m.

Eastern Time on the date above, will not be accepted. If changes are made to this solicitation, notification will be posted on the “Current Opportunities” section of NYSERDA’s website ( https://www. nyserda.

ny. gov/Funding -Opportunities/Current -Funding - # A. Climate Act and Clean Hydrogen As the U.S. energy landscape undergoes a historic transformation, New York State is committed to putting forward policies and programs that send a strong signal that public -private partnerships can catalyze economic growth and advance the State’s energy transition.

This commitment has accelerated the growth of renewable energy and widespread electrification while ensuring innovation and technology are advancing along with manufacturing competitiveness and supply chain security. # B. NYSERDA Clean Hydrogen Efforts New York has undertaken several key efforts to assess potential roles for clean hydrogen.

In April 2025, NYSERDA released its New York State Hydrogen Assessment 1, a comprehensive analysis of hydrogen’s potential role to decarbonize hard -to -electrify sectors and includes analysis to evaluate the feasibility, costs, and deployment opportunities for hydrogen, employing techno -economic optimization modeling and total cost of ownership analysis.

NYSERDA has also convened a series of meetings, listening sessions, and direct discussions with individuals and groups across the stakeholder landscape to better understand diverse perspectives on clean hydrogen in New York and to prioritize investment focus areas. Through its solicitation efforts in clean hydrogen, NYSERDA has awarded up to $ 11. 3 million for fifteen clean hydrogen innovation projects to date.

More information about NYSERDA’s efforts in clean hydrogen can be found at https://www. nyserda. ny.

gov/hydrogen . In De cember 2024, the Department of Public Service filed the 2026 -2030 draft proposal for innovation and research, which includes investment in hydrogen resources and infrastructure. 2 # C.

Federal Clean Hydrogen Programs and Policy The federal government also recognizes the importance of hydrogen as a potential carbon -free energy carrier that can enable a clean electric grid.

As outlined in the DOE Clean Hydrogen Commercial Liftoff report, the U.S. clean hydrogen market is poised for rapid growth, accelerated by DOE Hydrogen Hub funding, DOE’s Hydrogen Shot, and decarbonization goals across the public and private sectors.

3 The DOE Hydrogen Commercial Liftoff report also highlights hydrogen’s potential in decarbonizing the demand gap in a fully decarbonized grid by providing long -duration and seasonal storage, as well as peak shaving.

In January 2025, the US Department of Treasury and Internal Revenue Service (IRS) issued final rules for the 45V Clean Hydrogen Production Tax Credit (PTC) enacted by the Inflation Reduction Act of 2022, which > 1https://prod -cm. nyserda. ny.

gov/ -/media/Project/Nyserda/Files/Publications/Energy -Analysis/NY -Hydrogen -Assessment -complete - > 2https://documents. dps. ny.

gov/public/Common/ViewDoc. aspx? DocRefId=%7BE0ECC98F -0000 -CD18 -A8C4 -B019EB4E767E%7D > 3U.

S. Department of Energy. “Pathways to Commercial Liftoff: Clean Hydrogen” March 2023.

https://liftoff. energy. gov/wp - > content/uploads/2023/05/20230523 -Pathways -to -Commercial -Liftoff -Clean -Hydrogen.

pdf will help to greatly reduce the cost of clean hydrogen. Under the PTC, clean hydrogen producers are eligible for up to $3 in tax credits (adjusted for inflation) per kg of hydrogen produced with greenhouse gas emissions less than 0. 35 kg CO2e/ kg H2 and ad justed down for higher CO2e/kg H2 emission tiers.

4 In 2024, the U.S. Department of Energy (DOE) Hydrogen and Fuel Cell Technologies Office (HFTO) in partnership with the National Renewable Energy Laboratory (NREL) announced a request for proposals to support projects to reduce the capital costs of durable and high -performing fuel cells and water electrolyzer # A.

Growing Firm Capacity Demand in New York State As New York moves to decarbonize its grid in accordance with the targets mandated in the CLCPA and outlined in the Scoping Plan, electrification of large parts of the State’s economy and the growing proportion of renewably produced electricity on the grid will result in imbalances of electricity supply and demand on intra -day, inter -day, and seasonal timescales.

6,7 The ability of renewable production resources like solar and wind to meet this shift in demand on intra - and inter -day timescales will depend heavily on the deployment of short duration energy storage up to 8 hours provided by batteries.

To manage seasonal imbalances on much longer timescales than 8 hours between predicted peak renewable production in the spring, summer, and fall with increased electricity demand in the winter, a zero - carbon, firm dispatchable resource of at least 17 GW wo uld be needed by 2040.

8 This resource could take the form of hydrogen, which could be produced via electrolysis powered during periods of peak renewable electricity generation in the spring through autumn and dispatched during the winter for periods of up to 100 hours in order t o ensure grid reliability and stability (See Figure 2).

9 Furthermore, most of such demand will be concentrated in downstate and urban areas while more renewable electricity is expected to be available > 4U. S. Internal Revenue Service , “ Credit for Production of Clean Hydrogen and Energy Credit ,” January 2025.

> https://www. federalregister. gov/documents/2025/01/10/2024 -31513/credit -for -production -of -clean -hydrogen -and -energy -credit > 5R2R_Consortium_CRADA_Call .

Development Assistance Opportunity for Roll -to -Roll Manufacturing of Hydrogen Fuel Cell and > Water Electrolyzer Materials CRADA Call . https://sam. gov/opp/d3c80c939e4944b69a5a6c9363b10e3e/view > 6New York State Climate Action Council Scoping Plan.

https://climate. ny. gov/resources/scoping -plan/ > 7New York State Energy Storage Roadmap.

https://www. nyserda. ny.

gov/ -/media/Project/Nyserda/Files/Programs/Energy - > Storage/ny -6-gw -energy -storage -roadmap. pdf > 10 New York State Climate Action Council Scoping Plan, Tech Supplement Annex 2: Key Drivers Outputs. https://climate.

ny. gov/ - > /media/project/climate/files/IA -Tech -Supplement -Annex -2-Key -Drivers -Outputs -2022 -1. xlsx Figure 2.

Zero Carbon Firm Capacity Need Over a Challenging Winter Week in 2040 13 # B. Peaker Power Plants in New York State Today The US Government Accountability Office defined peaker power plants as power plants that have a capacity factor of 15 percent or less; and have a nameplate capacity of greater than 10 MW of electricity.

11 Across New York State, 62 fossil fuel -fired peak demand power generation units (peakers) with a combined nameplate capacity of greater than 12 GWs, are used to meet peak system capacity requirements including gas turbines and aging steam turbines. Of these peaker power plants in New York State, 88% have a nameplate capacity of 40 MW or greater and approximately 41 plants use natural gas as a primary fuel source in gas turbines.

12 A map of their locations across the state is shown in Figure 3. In its fleet of peaker units, New York State has approximately 4. 5 GW of active fossil -fired simple cycle combustion turbines (SCCTs), located almost entirely in New York City, Long Island, and the Lower Hudson Valley.

Many of these SCCTs have low utilization, generating electricity less than 5 -10% of the year, and are approaching an average age of 50 years. 13 > 11 “Electricity: Information on Peak Demand Power Plants GAO -24 -10614”. U.S. Government Accountability Office.

May 2024. > https://www. gao.

gov/products/gao -24 -106145 > 12 New York State Peaker Power Plants: Energy Storage Replacement Opportunities. PSE Healthy Energy June 2020. > https://www.

psehealthyenergy. org/work/opportunities -for -replacing -peaker -plants -with -energy -storage -in -new -york - > state/#nypeakersstatedemo > 13 New York State Department of Public Service, (December 28, 2022) “New York’s 6GW Energy Storage Roadmap: Policy Options > for Continued Growth in Energy Storage”, CASE 18 -E-0130, pp. 23 -24.

In December 2019, the New York State Department of Environmental Conservation (DEC) issued requirements to reduce emissions of nitrogen oxides from peaking generation units (referred to as the “Peaker Rule”). The Peaker Rule, which phases in compliance obl igations between 2023 and 2025, will affect approximately 3,300 MW of SCCTs located mainly in the lower Hudson Valley, New York City, and Long Island.

In addition, NYPA is required to publish a plan by May 2025 to phase out the production of electricity fr om its 7 small natural gas plants in New York City and Long Island totaling 517 MW by December 31, 2030, unless those plants are determined to be necessary for electric system reliability, or emergency power service.

14 The New York Independent System Operator (NYISO) in its annual “Gold Book” report estimates peaking power demand increases of 3. 7% in winter months and 0. 7% in summer months over the next 30 years.

15 The combination of New York’s aging infrastructure, increased peaking power demands, near -term peaker plant emission reduction targets, and ambitious, longer -term carbon -free electricity goals provides an opportunity to replace these inefficient, high -emi tting peaker units with new technologies. # C.

Hydrogen to Decarbonize Industrial Applications Industrial manufacturing process such as glass, cement, paper industries currently use fossil fuels to generate heat and electricity. Both the DOE commercial liftoff report 16 and NYSERDA hydrogen assessment report mentioned hydrogen as potential decarbonization solution for the industrial applications > 14 NYISO 2023 -2032 Comprehensive Reliability Plan. https://www.

nyiso. com/documents/20142/40459480/05a_2023 - > 2032_CRP_OC_101123. pdf/39982b1d -e84c -9971 -3feb -8f97a01f8db6 > 15 NYISO “2024 Load & Capacity Data Report (“Gold Book"),” April 2024.

/www. nyiso. com/documents/20142/2226333/2024 -Gold - > 16 DOE commercial liftoff report: Pathways to Commercial Liftoff Reports | Department of Energy Figure 3.

Map of Fossil Fuel Fired Peaker Plants in New York State 8 # D. Data centers are expected to grow significantly as artifi cial intelligence (AI) technologies become widely adopted. Data centers may quickly create the new demand for c lean electricity in the next decade.

Hydrogen -Based Power Generation Technology Existing gas turbine sites could be retrofitted to combust a natural gas/hydrogen blend or pure hydrogen , or new hydrogen combustion turbine could be deployed. In this solicitation, however, generating power using combustion turbine is not considered.

Hydrogen fuel cells can generate electricity through an electrochemical reaction combining hydrogen and oxygen with only water and heat as the byproducts.

The process has no carbon emission and no NOx As of August 2024, New York State has approximately 22 operating fuel cell electric power generators across 15 facilities with about 58 megawatts (MW) of total nameplate electric generation capacity located mainly in the lower Hudson Valley, New York City, and Long Island.

17 The majority of these fuel cells in operation use natural gas as their primary fuel source and the largest of these generators has a power generation capacity of 6 MW. Fuel cell systems can generate electricity at efficiencies up to 60 percent, which is higher than conventional gas turbin e power plants that typically generate electricity at efficiencies of around 35 percent.

18 In addition to greater conversion efficiencies, fuel cells also offer greater potential for emissions reductions in disadvantaged communities. However, for fuel cells to become commercially competitive to turbine -based technologies, more research and development is required to demonstrate a competitive levelized cost of electricity, reduce capital costs, extend durability, improve efficiency, and improve fuel flexibility.

19 Other hydrogen -capable technologies include linear generators, which offers the benefit of fuel flexibility. The same equipment can use any clean fuels (e.g. hydrogen, natural gas, biogas, ammonia). Hydrogen can be produced somewhere else and distributed to the power plant site.

Hydrogen can also be produced onsite with the power generation equipment. There are various clean hydrogen production • Hydrogen can be produced from water and electricity using electrolysis. The only product of this process are hydrogen and oxygen.

Electricity used for this process can come from renewables, nuclear reactors, or from the grid. • Hydrogen can also be derived thermally from fossil or biomass using steam methane reforming (SMR), methane pyrolysis, or thermally from water using thermolysis. Some of these processes result in CO2 emissions but can be integrated with carbon capture to re duce emissions.

Methane > 17 www. eia. gov/state/print.

php? sid=NY > 18 U.S. Energy Information Administration, “Preliminary Monthly Electric Generator Inventory ”, April 24, 2024. Preliminary Monthly > Electric Generator Inventory .

> 19 Achieving fuel flexibility and high efficiency in diesel engines through multiple injection strategies -ScienceDirect pyrolysis involves thermal decomposition process, in which methane is heated at high temperature in the absence of oxygen. The process generates hydrogen and solid carbon, without carbon dioxide or NOx .

Generating hydrogen onsite using t his method can leverage existing gas pipeline • Hydrogen may also be found underground in naturally occurring reservoirs. # F. Hydrogen Distribution Efficient distribution of hydrogen in large volumes to consumers is one of the largest challenges to overcome with implementing hydrogen -based power generation solutions.

Bulk volumes of hydrogen today are either transported as a liquid in cryogenic liquid tankers via road, rail, or ship or as a gas via pipelines or compressed gas tube trailers. 20 Despite its associated high initial capital costs, there are approximately 1,600 miles of hydrogen pipelines operating in the United States today.

21 Owned by merchant hydrogen producers, these pipelines are deployed in regions with substantial demand (hundreds of tons per day) that is expected to remain stable for decades. In New York State, Linde, Inc. operates a small hydrogen pipeline in Niagara County that transports low pressure hydrogen gas.

22 Cryogenic liquid tankers and gas tube trailers are deployed in regions where demand is at a smaller scale, infrequent, or still emerging. Ongoing research and demonstrations of other hydrogen delivery methods such as supply via chemical carriers (e.g., ammonia, or other Liquid Organic Hydrogen Carriers) are underway, but more research is needed to prove their reliability and effectiveness in bulk applications.

23 Continued research, development, and demonstration (RD&D) is still needed to reduce capital costs, reduce variable costs, and improve the reliability, efficiency, and safety of supplying hydrogen at scale especially into urban areas where zero - emission power generation needs are highest. # G. Onsite Hydrogen Storage Onsite hydrogen storage also poses a challenge for hydrogen -based technologies in the power generation sector.

Sites must have sufficient supply of hydrogen readily available to quickly ramp up and maintain power generation to meet grid demands. Hydrogen storage options primarily in use today are physical -based storage options which include gaseous storage tanks, insulated liquid tanks, and underground geologic storage.

Gaseous storage tanks are volume limited because of the low density of hydroge n gas and tend to operate at higher pressures, which can pose a safety risk for operation in urban areas. Cryogenic liquid storage tanks are the most common way to store large quantities of hydrogen at industrial sites, but require expensive, super -insulat ed low -pressure vessels.

> 20 Seyed Ehsan Hosseini, “Chapter 5 -Hydrogen storage and delivery challenges”, Fundamentals of Hydrogen Production and > Utilization in Fuel Cell Systems, Elsevier, 2023, Pages 237 -254. > 21 US Department of Energy, HFCTO, “Hydrogen Pipelines”. https://www.

energy. gov/eere/fuelcells/hydrogen -pipelines > 22 “Pipeline Safety Info for Linde Niagara Falls Pipeline,” Linde 2024. www.

pipelinesafetyinfo. com/user/file/New%20York/Linde. pd f > 23 US Department of Energy, HFCTO ,“Hydrogen Delivery”.

https://www. energy. gov/eere/fuelcells/hydrogen -delivery Regardless of the quality of the insulation used in the vessels, some heat will reach the tank over time and cause the liquid hydrogen to boil and vent, which limits the ability to store hydrogen long term as a cryogenic liquid.

Underground geologic storag e options allow for large volumes of hydrogen to be stored at lower pressures for long periods but are limited to areas with specific geological characteristics. Options for underground geologic storage for hydrogen include storage in salt caverns, deplete d gas wells, and aquifer structures, or in specially engineered rock caverns.

Geologic bulk storage is common practice within the gas industry and in the United States alone there are three hydrogen salt caverns in operation which store a total of 332 GWh of hydrogen gas.

24 Other hydrogen storage technologies are under development but require more research to prove their effectiveness at scale , for example, material -based solutions including using sorbents (adsorbents or absorbents), chemical carriers (ammonia, methanol, etc.), or metal hydride options to store hydrogen .

25 Material -based solutions can typically be operated at lower pressures than their physical -based counterparts, which can be attractive for sites located in high -density areas with a lower tolerance for safety # III. Program Requirements The following requirements apply to both Phase 1 and Phase 2 designs. # i.

Hydrogen -based Design Requirements: 1. Hydrogen fuel cell -based solution for peaking power plant with a nameplate generation capacity of at least 10 MW, and can operate at a capacity factor ranging from 2% to 15% in a year. 2.

Hydrogen fuel cell -based solution to generate energy for industrial applications and ha s a minimum nameplate generation capacity of 1MW. Industrial applications include those us ing fuels to generate heat for the manufacturing process, such as glass, cement, paper or metal , as well as those using fuels to generate electricity for industrial purposes , such as data centers. 3.

This solicitation focuses on using fuel cell s for firm capacity or industrial applications . Genera ting power with combustion turbines are not qualified in this solicitation . 4.

Blending hydrogen with other fuels is allowed at the initial stage, but the proposal should explain how the selected technology will reach the goal of using 100% emission free clean hydrogen at the 5. Supply ing hydrogen to the proposed project site(s) needs to be considered in the design .

This includes either generating hydrogen onsite or transporting hydrogen to the site through different options, such as pipelines, barge, rail, truck, etc. 6. Operational requirement: the hydrogen peaking power plant design should be based on dispatch requirement per existing plant operation, or anticipated future grid need for the selected site. > 24 Gregoire Hevin, “Underground Storage of Hydrogen in Salt Caverns,” Presentation.

Nov. 2019. https://energnet.

eu/wp - > content/uploads/2021/02/3 -Hevin -Underground -Storage -H2 -in -Salt. pdf > 25 US Department of Energy, HFCTO. “Hydrogen Storage”.

https://www. energy. gov/eere/fuelcells/hydrogen -storage Hydrogen facility for industrial application must be designed to meet the respective application 7.

The hydrogen supply and onsite storage should be able to support the expected operational requirement of the power plant or industrial application for the selected site . 8. Emission requirement should be based on DEC guidelines .

# ii. Site Selection Requirements The scope of work for Phase 1 includes selecting a site for the plant (see more details about the scope of work in Section III. B).

Proposers are encouraged to choose sites based on the following criteria: • Sites that can maximize transferability of the study to other peaking power plants or industrial • Sites that have high likelihood to success in potential future deployment.

For example, sites that can secure necessary hydrogen supply delivered to the site without dependence on the uncertainty of pipeline availability and sites that have enough space available for onsite hydrogen storag e to support required operation. • Sites that can leverage existing facilities (e.g. existing interconnection switch yard, faster permit, brown field instead of green field).

• Sites that are critical to support grid reliability and stability based on analysis. • Sites with supportive local communities. Additionally, the site needs to pay into the Clean Energy Fund (https://www.

nyserda. ny. gov/About/Funding) through the electric System Benefits Charge (SBC), unless significant statewide benefits are demonstrated.

# iii.

Required Equipment Scope for Engineering Design The following equipment should be included in both Phase 1 and Phase 2 designs: • Core equipment for power generation for peaking power plant or industrial applications using fuel • Balance of plant equipment including but not limited to electrical and control system, water, and • Grid interconnection equipment if any modification or new build is necessary to support the anticipated peaking power plant operation with hydrogen; • Equipment to transport hydrogen to the site or produce hydrogen onsite to support expected volume for power generation ; and • Equipment for onsite hydrogen storage as needed for the plant operation.

Entities not based in or operating in New York can also apply, but with specific requirements: Non -New York -based entities are eligible to apply as a prime recipient or subrecipient if the demonstration site is in New York State. NOTE: All Demonstrations m ust take place (1) within 12 New York State, and (2) at a site that pays into the Clean Energy Fund (https://www. nyserda.

ny. gov/About/Funding ) through the electric System Benefits Charge SBC), unless significant statewide benefits are demonstrated. The scope of work for both Phase 1 and Phase 2 are described below.

Proposals should include information related to the proposed scope of work for both phases in the required proposal attachments. For a list of the required proposal attachments, see Sectio n IV. A Required Proposal Attachments.

# i. Phase 1 – Scope of Work During Phase 1, proposers are expected to complete the Phase 1 analysis, which includes evaluation of different options, completion of high -level designs, initial cost analysis, and identification of the best option for further analysis in Phase 2.

The scope of work for Phase 1 should include but not be limited to: • Site Selection: Identifying target site(s) for this analysis , either for dispatchable peaking power plant s or industrial applications ; see Section I II. A. ii.

for requirements on site selection. • Identify possible options for the different equipment; see Section III. A.

iii. for the equipment scope required for engineering design. For example, hydrogen transportation methods may include pipeline, barge, truck, rail, etc. and it may be transported an d delivered to the site in compressed gaseous, liquid, ammonia, or liquid organic hydrogen carrier .

1) Conduct a review of similar applications and arrangements used worldwide to understand best practice and its operational experience. Specify when, where, which project, and what level (as a small -scale pilot or a full -scale commercial operation) that the o ption has been used (by the proposal team or by others).

2) Evaluate Technology Readiness Level (TRL) and Commercial Readiness Level (CRL) for 3) Provide descriptions, high level functional specifications, illustrations, drawings, and 4) Include end -to -end supply chain, equipment, and process (e.g. purification, drying , compression, etc.) necessary to support this option.

5) Identify any existing facilities that might be reused or retrofitted (e.g. storage facilities, ports, railroad sidings, interconnection switchyard, etc.) . 6) Estimate initial CAPital EXpenditure (CAPEX) and OPerational EXpenditure (OPEX) assessments and Levelized Cost of Hydrogen (LCOH) based on 20 years and 40 years of operating lives. Include quotes for key equipment and long lead items.

7) For peaking power plant design s, estimate cost of electricity in $/MWh . For industrial applications , e stimate cost of energy generated from the fuel -cell based design.

Cost calculation in this phase should be within +/ - 50% and based on the anticipated operation 8) Identify any key issues, risks, or potential “showstoppers” associated with this option, such as technical challenges, codes and standards, policy, etc. 9) Compare advantages and disadvantages of each option.

13 • Based on the Phase 1 analysis and comparison of different options, the proposer should recommend which option is the most practical and worthy to move to Phase 2 design. For the selected option to proceed into Phase 2 , the proposer should: 1) Recommend any changes necessary to laws, policies, codes and standards, or other regulation limits relevant to this option for future potential deployment.

2) Develop a community and stakeholder engagement plan. 3) Develop a conceptual site layout and equipment arrangement. 4) Create a preliminary timeline to execute the project to provide an indication of the overall length of time required to implement this option.

5) For peaking power generation, e valuate its grid firming capabilities, including: ▪ Ability to provide long term energy storage capa city, ▪ Ability to contribute to inertia or maximization of in ertia , ▪ Ability to provide primary frequency response (PFR) , ▪ Ability to provide enhanced short circuit contributions and grid strengthening , capability (e.g., generator design optimized to maximize short circuit ▪ Ability to ramp up and down in a short amount of time , and ▪ Ability for quick s tartup and multiple start .

6) For hydrogen facility to support industrial applications , evaluate its capabilities for the specific application , such as reliability, efficiency, etc. At the end of the Phase 1, NYSERDA will conduct a Go/No -Go review for each project. This will occur on a rolling basis as each project completes its Phase 1 scope of work.

Funding beyond the Go/No -Go decision point (continuation funding) is contingent upon NYSERDA’s Go/No -Go dec ision and availability of NYSERDA funds. Due to the availability of funding and program considerations, only a portion of the recipients may be selected to receive funding for Phase 2. During the