Propane Fuels America: Hawaii

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 Hawaii.

Total odorized propane demand (2019): 40 million gallons

U.S. rank for gallons sold: 48

Gallon sales trend: Hawaii has hovered around the 40-million-gallon mark from 2017-19.

Census region/division gallons: West: 1.71 billion/Pacific: 910 million

Propane autogas school buses/districts and contractors: 0

Market pointers 

The hospitality industry and tourism are prime sources of propane consumption in Hawaii. Photo: TriggerPhoto/iStock / Getty Images Plus/Getty Images

⦁ About 85 percent of all propane gallon sales flow into the commercial market. The hospitality industry and tourism are prime sources of propane consumption – with resorts and hotels using LPG for pools, outdoor fire pits and the like.

⦁ Residential propane demand is linked mainly to water heating, cooking and other appliances. Given the portability and clean-burning benefits of propane, the fuel is likely to remain popular in both the residential and commercial sectors.

⦁ Hawaii’s transportation sector is the largest energy consumer in the state, followed by industrial consumption. Given that there are zero propane school buses in Hawaii, the entire state presents a potential growth market for propane.

⦁ Extensive agricultural and landscaping industries combined with strong consumer preferences for environmentally friendly fuels make Hawaii a potential market for propane.

⦁ Propane’s use as a portable and reliable fuel during emergencies is important for a state that has experienced major volcanic eruptions.

⦁ Hawaii Gas supplies customers across the state.

Fast facts

State association affiliation: Pacific Propane Gas Association (PPGA)/pacificpropane.org

Programs: Rebates for marketers and propane customers. Most utilized are customer rebates, including on-road vehicle incentives and safe appliance installation program. PPGA provides a $1,500 incentive on a newly purchased propane vehicle or conversion on an existing vehicle with a propane system. The safety appliance program covers most types of appliances with rebates up to $500. Visit ppgarebates.com.

Marquee events in 2021: PPGA is a partner at the Western Propane Trade Show & Convention in Reno, Nevada. Annual meeting planned for Kauai, Hawaii, following NPGA Propane Expo in October.

Before COVID-19: The propane industry in Hawaii had contributed $319 million to the 2018 state economy. It’s too early to assess COVID’s impact on gross domestic product.

“We see a lot of challenges in Hawaii – a lot actually with solar because it’s sunny all the time. There’s still some reliability issues with solar, even in Hawaii. It’s really a lot of the similar [regulatory] challenges that a state like California has – those are a lot of the same things we would see in Oregon, Washington and Hawaii.” – Matt Solak, executive director, PPGA

What’s the weather?

Average temperature:
85 degrees F summer
78 degrees F winter

Annual heating degree-days five-year average (2015-19): 0
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; Pacific Propane Gas Association; Hawaii Visitors and Convention Bureau