New York’s rust belt could yield a greener economy that produces and consumes more renewable energy from soybeans to hydrogen, according to an economic report released by state Comptroller Alan Hevesi.

The report said thousands more jobs would be created in manufacturing and energy related industries if New York steps up its commitment to generating more electricity through renewable sources. The report is the latest to call for New York to expand solar, wind and hydro power, as well as develop crops including corn and soybeans that can be processed into fuel.

Mr. Hevesi said 43,000 jobs would be created if, by 2013, the state increased to 25% the share of electricity used in New York through nontraditional, renewable resources. That commitment, he said, would spawn new businesses to provide the raw materials for the nontraditional fuel.

Renewable resources now account for about 20% of the state’s electricity use, he said.

There are about 170 companies in the state in the renewable energy industry now, but that could quickly expand, particularly in Albany, Syracuse, Rochester and Long Island, because university research is already under way there, he said.

Governor Pataki, a Republican, has been calling for a greater state commitment to “renewable bio-fuels.” He noted that the Syracuse School of Environmental Science and Forestry is developing a way to produce ethanol fuel from wood fiber and Clarkson University is building refineries to make “bio-diesel” from agricultural products. He has ordered state agencies to start using bio-fuels to heat state buildings and as truck fuel. He also directed an agency to install hydrogen refueling stations for state vehicles over the next 10 years.

Republican state Sen. Carl Marcellino, chairman of the Senate Environmental Conservation Committee, said recent laws he sponsored and Mr. Pataki’s proposals have growing support in the public – angry at rising petroleum prices – and in the Legislature. He welcomed Mr. Hevesi’s report but said he believes the Legislature is already on track to a greater commitment to renewable energy.

“I think we could create jobs,” the Long Island Republican said. “If we are able to turn soybean oil into fuel … and give farmers a cash crop, there would be a lot more money on the farm.”

Matthew Maguire of the state Business Council said the state shouldn’t be subsidizing businesses even if it promises jobs. Tax-subsidized jobs aren’t as stable or as beneficial for a community as jobs created by companies drawing their profits from beyond the state.

“We support renewable energy, but we think it should unfold at its own pace in a free market,” Maguire said. “We are deeply concerned New York state’s economy is already too reliant on taxpayer-financed jobs.”