Propane Fuels America: Georgia

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 Georgia.

Total odorized propane demand (2019): 210 million gallons

U.S. rank for gallons sold: 17

Gallon sales trend: Georgia has moved upward since selling 175 million gallons in 2017. It sold 218 million the following year before settling at 210 in 2019.

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

Propane autogas school buses/districts and contractors: Out of an estimated 15,601 school buses in Georgia in 2020, 994, or 6.37 percent, were fueled by propane. As of 2020, Georgia ranks seventh out of 51 (including Washington, D.C.) for the total number of propane school buses and 15th out of 51 for propane bus penetration within the school bus fleet.

Market Pointers

⦁ The residential sector consumed 42 percent of the propane gallons sold in 2019. There is room for marketers to grow residential sales – buoyed by the state’s population growth, economic incentives and the opportunity to displace heating oil, kerosene or wood for home heating fuel.

School bus manufacturer Blue Bird, which offers alternative fuel models including propane, is based in Macon, Georgia. (Photo courtesy of Roush CleanTech)

⦁ Blue Bird, manufacturer of school buses, including propane-fueled models, is headquartered in Macon, Georgia. Early this year, the company announced that it would begin production of its 2022 propane and gasoline Vision school buses, integrating Ford’s 7.3-liter V-8 engine and a Roush CleanTech fuel system.

⦁ Southern Georgia has a solid agriculture market, as propane is used to fuel irrigation engines and crop dryers. Propane meets the needs of those farming corn, cotton, peanuts and tobacco.

⦁ The 1,300-mile Dixie Pipeline transports propane from fractionators and refineries in Texas, Louisiana and Mississippi to customers throughout the southeastern U.S., including Georgia.

⦁ Georgia Gov. Brian Kemp signed HB 150 into law May 6, marking the end of a two-year effort by the Georgia Propane Gas Association and a coalition of energy choice supporters to protect consumers’ energy choices within the state.

⦁ Atlanta has been a longtime host of the National Propane Gas Association’s Southeastern Convention & International Propane Expo, scheduled this year for Oct. 18-20.

Fast facts

State association affiliation: Georgia Propane Gas Association (GPGA)/georgiapropane.org

Programs: The Georgia Propane Education & Research Council establishes and facilitates programs to enhance safety, training, research and development, and safety education in the propane industry for the benefit of propane consumers and the public. In addition, the Agricultural Commodity Commission for Propane, a check-off program, passed in 2019 to help raise funds for the industry.

Marquee events in 2021: GPGA board meeting, Oct. 7, Callaway Gardens

Before COVID-19: The propane industry in Georgia had contributed $764 million to the 2018 state economy. It’s too early to assess COVID-19’s impact on the state’s gross domestic product.

“Though people are concerned about the environment, it is not their primary reason for making a change. It’s the cost savings.” – Bill Moore, sales manager of Conger LP Gas, on propane’s role in fueling water heaters and other customer appliances

What’s the weather?

Average temperature (2020): 65.6 degrees F

Annual heating degree-days five-year average (2015-19): 2,418
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; U.S. Energy Information Administration’s State Energy Profiles