Propane Fuels America: Florida

LP Gas’ yearlong Propane Fuels America series takes a deep dive into how each state benefits from the propane industry. Here’s our report on Florida.

Total odorized propane demand (2019): 213 million gallons

U.S. rank for gallons sold: 16

Gallon sales trend: Florida has remained consistent in gallon sales over the last several years. It sold 210 million gallons in 2017 and 217 million the following year before settling at 213 million in 2019.

Census region/division gallons: South: 2.61 billion/South Atlantic: 1.37 billion

Propane autogas school buses/districts and contractors: 738/19

Market Pointers 

⦁ Florida has been one of the fastest-growing states in the past century, in part because air conditioning became widely available and because of the state’s popularity as a tourist and retirement destination. In 2018, Florida was the third-most populated state and the fourth-largest energy-consuming state.

The LP Gas Growth Summit is held at Reunion Resort, outside Orlando, Florida. Photo by LP Gas staff

⦁ At 42 percent, the commercial market consumes the most propane gallons in Florida, with the residential sector providing a quarter of total sales. That’s not a surprise considering the state’s warm climate. Florida has the nation’s second-fewest heating degree-days, behind only Hawaii.

⦁ Florida has roughly 22,210 households using either wood or fuel oil or kerosene for heating, as of 2019. Fuel-switching opportunities could represent an additional 17 million gallons of propane demand each year.

⦁ An older and affluent population means that landscaping services are likely growing. There is strong demand for propane appliances; Florida is making a strong push to advance the number of net-zero energy homes, and propane appliances can be an effective tool in this effort. A small business sector based on tourism could support commercial demand, and propane-powered school buses offer expansion opportunities in the transportation sector.

⦁ On June 21, Florida became the 17th state to enact a law to protect consumer energy choice. Gov. Ron DeSantis signed HB 919 into law with support from the Florida Propane Gas Association (FPGA). Dale Calhoun of the FPGA says Florida’s legislation – and its Power Florida Forward communication campaign highlighting the benefits of gas – has been a model for the rest of the country.

⦁ Florida contains solar energy potential as well as substantial biomass resources and some oil and natural gas reserves.

Fast facts

State association affiliation: Florida Propane Gas Association (FPGA)/floridapropane.org

Programs: The Propane Education Foundation of Florida establishes and facilitates programs to enhance safety, training, research and development, and safety education. The state’s continuing education program has grown significantly.

Marquee events in 2021: FPGA fall committee and board of directors meetings, Oct. 27-28, Hard Rock Hotel, Daytona Beach

Before COVID-19: The propane industry in Florida had contributed $771 million to the 2018 state economy. It’s too early to assess COVID-19’s impact on the state’s gross domestic product.

“Florida’s propane industry always meets challenges. The industry has been extremely busy before and throughout the pandemic. Construction has been record breaking in our state. Propane in Florida is a luxury that many people want, but a necessity for resilience during our tropical weather cycles.” – Dale Calhoun, executive director, FPGA

What’s the weather?

Average temperature (2020): 73.2 degrees F

Annual heating degree-days five-year average (2015-19): 424
U.S. average: 4,090

Sources: Propane Education & Research Council’s U.S. National and State Propane Market Profiles; Annual Retail Propane Sales Report; propane.com; Florida Propane Gas Association; U.S. Energy Information Administration’s State Energy Profiles