Powering the propane opportunity

August 4, 2026 By Brian Richesson 0 Comments

Companies such as Mesa Power Solutions offer propane-fueled equipment. (Photo courtesy of Mesa Power Solutions)

Propane-fueled power generation discussions have ramped up on these pages in the past several years. Dare we say there’s a movement taking place within this market?

We at LP Gas have placed our focus in August on power generation because something is happening out there that deserves our attention and yours. It only takes a look and a listen around the propane industry to know something is brewing.

The U.S. power grid is where much of this story starts, as there’s real concern – by industry, consumers and government agencies – that growing electricity demand will continue to outpace grid capabilities and disrupt domestic infrastructure. Many are already feeling the effects of rising electricity costs and power outages.

“You can’t deny that things are going on with our power grid in the U.S.,” Chris Hill, president and CEO of Meritum Energy and chair of the Propane Education & Research Council (PERC), told us earlier this year.

▶ PERC, NPGA and the states

A new white paper from PERC not only underscores the impacts of an aging grid on homeowners and businesses but also reveals a preparedness gap that propane can help close.

Power generation has also gotten the attention of the National Propane Gas Association (NPGA) and state leaders.

NPGA’s Austin Wicker writes in Let’s Talk about how state electrification policies are at odds with state energy security plans that assume propane will play a major role in sustaining critical infrastructure – even if those policies say otherwise. On the state propane association side, Tom Clark pens his second State Affairs column for us, this time describing how power outages years ago were only inconveniences compared to what’s taking place today and what’s still to come.

Hill, meanwhile, is one of several strong voices, from several forward-thinking propane marketers, quoted in this month’s cover story outlining the industry’s current position in power generation. The article highlights the changing role of propane marketers and how they can meet a variety of customer power needs; the technology and applications available on the market; as well as the growing interest from equipment manufacturers.

The manufacturers were part of a PERC Power Generation Summit earlier this year – an event demonstrating that propane marketers are ready to “make a go at this” with that equipment, as PERC’s Bert Warner explains in the cover story.

▶ Displacing diesel

Growing propane gallons and displacing diesel in power generation applications is part of PERC’s 2026-28 strategic plan. One noticeable new step here was the approval of a $1.4 million project with Caterpillar for the “large propane engines market.” This work supports data center bridge-to-grid power, demand response and peak shaving.

While the Cat project is developing, many other manufacturers already have equipment in the field operating on propane. This type of equipment is on display in our power generation product section, showcasing the variety of OEMs that make propane part of their portfolio. This is proof that propane marketers have potential partners available to help them navigate uncharted territory if, as Warner says, they make a go at it.

Propane industry companies are also adapting their models for power generation success. Equipment distributor Bergquist partnered with EC Power on the deployment of micro combined heat and power (micro-CHP) systems across the United States. Bergquist selected Amy Berg to lead these efforts and work with marketers interested in expanding into on-site energy services. Berg is our Propane Personality.

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