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Renewable propane offers the same cost efficient, energy efficient, and resiliency benefits of propane but significantly reduces carbon emissions compared to other energy sources. While propane is already considered a clean-burning, cost-effective fuel, renewable propane is an ultra-low-carbon option. Commercial-scale renewable propane is produced in renewable diesel refineries using a hydrotreated vegetable oil (HVO) process with feedstocks including plant and vegetable oils, animal fats, and used cooking oil. Today, renewable propane is also generated from the camelina plant, which is a member of the mustard family but is not a food crop and does not compete with food production.
Camelina has been grown for centuries but recently the plant is gaining attention for biofuels because of the oil contained in its seeds. The cover crop produces 40% oil, which is twice that of soybean. The remaining meal and husks are used for mulch and livestock feed. Camelina-based renewable propane has one of the lowest carbon scores, with studies showing it can reduce greenhouse gas emissions by up to 60% compared to petroleum fuel.
Benefits of Renewable Propane
Renewable propane’s carbon intensity (CI) — or the carbon emitted for every unit of energy it produces — is lower than conventional propane’s because it’s produced from bio-based or renewable sources. With scores between 20.5 and 43.5 grams of carbon dioxide equivalent per megajoule (gCO2e/MJ), depending on the feedstock, renewable propane made from camelina oil has a lower CI score than the electric grid in 49 states and renewable propane made from non-camelina oil feedstocks has a lower CI score than the electric grid in 45 states. The carbon intensity score of conventional propane is also lower than the electric grid in those same 45 states at 80 gCO2e/MJ, with diesel at 100 gCO2e/MJ and gasoline at 101 gCO2e/MJ.
Renewable propane can also work alongside other renewable energy sources, like solar and wind. Renewable propane is chemically identical to conventional propane, and can be used in the exact same applications, such as power generation and residential heating and water systems. However, renewable propane offers a pathway to cleaner energy since its carbon intensity score ranges from 20.5 to 43.5, while the average U.S. electric grid score is 130. Additionally, the CI of conventional propane is significantly cleaner than the electric grid at 79.
It should be noted that renewable propane is more readily available in certain markets, and is currently used primarily for autogas in vehicle fleets. For example, California’s Low Carbon Fuel Standard (LCFS) aims to increase the share of renewable fuel consumption in the transportation and autogas markets to help dramatically reduce greenhouse gas emissions. The National Propane Gas Association (NPGA) notes, “Producers, sellers, and users of transportation fuels with high carbon content will be increasingly penalized under the standard, and those using fuels with low and falling carbon content will be rewarded. California represents the leading edge of the future of energy. Energy policy in California typically foreshadows trends that sweep across the country, and renewable propane can and will be part of that trend.” Approximately all of the 900 million gallons of renewable propane in the U.S. was consumed in California in 2019 because of these economic incentives.
What You Need to Know
The NPGA believes the biggest expansion in renewable propane would come if states and federal governments offer incentives for use in commercial and residential buildings. As a builder, you can get ahead of the game and use this knowledge about carbon to educate homeowners when they are considering transitioning from traditional to renewable propane. Here are some key considerations to convey:
- Because renewable propane’s chemical structure and physical properties are the same as conventional propane, it can be used for all of the same applications.
- Equipment changes and upgrades are not required, as existing propane equipment such as space heating, tankless water heaters, and generators will be compatible.
- Propane-powered equipment typically lasts longer than those fueled by other energy sources. For example, propane-fueled tankless water heaters have a life expectancy of about 20 years, which is longer than most other conventional storage water heaters.
- Builders and homeowners can instantly start using renewable propane with existing applications.
Conventional propane is already cleaner than the average of the U.S. electric grid today, and will be even cleaner tomorrow. As the technology scales up, renewable propane will have a significant impact on the industry’s carbon footprint and will help get closer to zero emissions. “Propane is clean, and renewable propane is cleaner,” says Gavin Hale, director of product development and power generation at PERC. “With the lowest carbon intensity of any energy source, renewable propane is making the path to zero and near-zero emissions attainable within the next 15 years.”
Learn more about the environmental benefits of renewable and conventional propane.
