Industry data shows growth in engine fuel

With its low cost relative to gasoline and diesel and its clean-burning attributes, propane is poised to grow gallons in the engine fuel segment, according to energy analyst ICF International.

ICF has been gathering and updating industry data in preparation for a 2013 Propane Market Outlook.

More propane options for on-road vehicles, commercial lawn mowers and stationary engines, as well as an improving economy, should benefit the propane industry in the years to come.

However, obstacles remain for the industry, which must contend with a regulatory, policy and promotional focus on competing fuels, such as compressed natural gas. In addition, alternative fuel tax credits that expired at the end of 2011 haven’t been renewed.

These potential gains in propane sales should help offset a loss in the forklift market, which was hit hard by the recession. Electric lift trucks have benefited from improved technology and lower operating costs.

ICF says the propane industry must educate consumers (fleets) and policymakers on the economic and environmental benefits of propane vehicles.