CHS Program Case Study CHS Program Case Study
A NEW REBATE PROGRAM
In 2019, CHS launched the Propane-Powered™ Rebate Program that offers propane marketers a penny for every gallon of propane purchased from CHS. Under the program, marketers are eligible to receive up to nearly $300,000 by investing in propane vehicles and infrastructure.
MARKETer COMPANY PROFILE
Founded in 1929, CHS is a global agribusiness owned by farmers, ranchers, and cooperatives across the United States. It operates as one of the nation’s largest propane wholesalers.
- 150 terminals
- 40 states
LESSONS LEARNED FROM KENTON SONNENBURG ENERGY EQUIPMENT SALES MANAGER, CHS
1. ENSURE DELIVERIES ARE EFFICIENT.
An example is if you’re making large deliveries to farms or commercial accounts, that means a lot of trips back to the bulk plant to refuel so you can serve those customers. Currently, the S2G does not have an available option for a tank bigger than 3,200 gallons. However, we are confident that trucks with more fuel capacity will be an option in the near future.
“CHS uses S2Gs, F-550s, and F-250s that run on both propane and gasoline. ICOM and Alliance Autogas recommended we do it like that because it makes sense when you’re driving further distances to be able to refuel with gasoline if the propane infrastructure isn’t there.”
2. LOOK AT TOTAL COST-OF-OWNERSHIP.
When the long-term costs of diesel exhaust fluid, filters, and maintenance are taken into account, propane starts to be a more affordable option. The rebate program helps to eliminate that initial upfront cost of buying a propane-powered vehicle by offering $5,000 toward the purchase of an S2G or F-750 bobtail. Combine that with state incentives and the cost difference becomes even smaller between diesel and propane trucks.
3. USE IT AS A RECRUITMENT TOOL.
CHS drivers really like the propane vehicles, especially because they don’t have to deal with diesel gelling in cold-weather startups.
“Propane vehicles are reliable, clean, and efficient and many drivers prefer them over diesel vehicles.”