Governor Hochul Announces Launch of $10 Million Empire Technology Prize to Advance Tall Building Low Carbon Heating System Retrofits

NYSERDA Prize Administered by The Clean Fight Includes $3 Million Wells Fargo Sponsorship

Supports The Climate Leadership and Community Protection Act Goal to Reduce Emissions 85 Percent by 2050

Governor Kathy Hochul today announced the launch of the $10 million Empire Technology Prize, a competitive opportunity for global solution providers focused on advancing building technologies for low carbon heating system retrofits in tall commercial and multifamily buildings in New York State. The New York State Energy Research and Development Authority initiative, administered by The Clean Fight with technical support from Rocky Mountain Institute, includes a $3 million sponsorship from Wells Fargo. This program supports New York State’s nation-leading Climate Act agenda including the goal to achieve an 85 percent reduction in greenhouse gas emissions by 2050.

“Investing in new clean, resilient technologies is just one way that New York is advancing progress toward our ambitious Climate Act goals, and the Empire Technology Prize is the newest tool as we move forward,” Governor Hochul said. “This program will help us develop solutions that lower harmful emissions from buildings, creating healthier spaces for all New Yorkers to live and work, as we come together to fight climate change.”

Today’s announcement was made at an event held in Manhattan to discuss the transformative potential of technology to reduce energy and dependence on fossil fuels in existing tall buildings. The Empire Technology Prize is a competitive program that represents a significant market opportunity for equipment manufacturers and entrepreneurs to develop low-carbon solutions in discussion with leading real estate partners while exploring opportunities for heating system retrofit demonstration projects in tall commercial and multi-family buildings. Applicants are challenged to develop a tested and fully functional prototype of a heating or distribution system that can be installed in a manner that does not displace occupants and works with existing infrastructure in buildings seven stories or taller.

Solution providers are encouraged to submit proposals that will be reviewed and judged by industry experts, in conjunction with participating real estate companies partnering with The Clean Fight. The Clean Fight will bring together finalists and leading New York real estate portfolio owners interested in giving feedback on the finalist’s proposed solutions and discussing pilot and demonstration opportunities in New York. Applicants will be eligible to receive up to $1 million each; $250,000 on acceptance as a Finalist, and up to $750,000 in milestone payments by progressing their solution. In addition, a total of $2 million will be available to help finalists offset the costs of installing solutions such as pilot programs or demonstration projects in eligible tall buildings in the New York market. At the end of the one-year prize program, beginning July 2024 and ending June 2025, one winner will be awarded an additional $1 million grand prize, based on the solution with the greatest potential cumulative carbon emissions reduction by 2040 in the New York market, with a goal of facilitating the further development and deployment of the solution in New York's tall buildings.

With approximately 1.5 billion square feet of existing buildings that use steam to provide heating to New York families and workers, proposals are sought for two focus areas including:

• Centralized building heat pumps that generate steam or high temperature hot water.
• Solutions that make it easier to adopt readily available centralized low temperature heat pumps into existing building distribution systems.

Applications will be accepted through 3:00 p.m. on March 22, 2024.

The Clean Fight was selected as the program administrator for the Empire Technology Prize in September 2022 and has successfully operated a cohort-based, growth-stage accelerator program for the past 2.5 years. Rocky Mountain Institute (RMI), an independent nonprofit dedicated to transforming global energy systems through market-driven solutions, is providing technical, prize design, and program support. Wells Fargo’s sponsorship aligns with the company’s ongoing work in affordability in New York and its commitment to support its business, customers and communities transitioning to a resilient, equitable and sustainable future. In addition to philanthropic efforts, the company has a goal to deploy $500 billion in sustainable financing by 2030 and is one of the largest affordable housing lenders in New York State.

The Empire Technology Prize was first announced in April 2021 as part of the $50 million Empire Building Challenge which included partnerships with 10 leading real estate groups with the goal of transforming existing multifamily and commercial tall buildings to substantially reduce the carbon footprint of these structures. The Empire Building Challenge cohort has since expanded to include partnerships with 16 leading real estate owners who collectively operate over 220 million square feet of New York real estate.

Buildings are one of the leading generators of greenhouse gas emissions in the State and 70 percent of buildings in New York State were constructed before the energy code and will need to be upgraded in order to achieve the State’s climate goals. The Empire Technology Prize continues the New York State Energy Research and Development Authority’s leadership in advancing carbon-neutrality in existing buildings and will draw on lessons learned from projects supported through the Empire Building Challenge.

This announcement builds on New York State's investments in research, development, and commercialization to support innovators that are accelerating the low emissions and carbon sequestering technologies needed to meet the State's goal for economy-wide carbon neutrality. 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.

As authorized by the New York State Public Service Commission, funding for this initiative comes from the State’s 10-year, $6 billion Clean Energy Fund and Wells Fargo as a program sponsor. More information about the CEF is available on NYSERDA’s website.