Propane Fuels America: Ohio

December 10, 2021 By Ellen Kriz

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 Ohio.

Total odorized propane demand (2019): 353 million gallons

U.S. rank for gallons sold: 11

Gallon sales trend: Ohio saw a 6 percent increase in gallon sales from 295 million gallons in 2017 to 312 million in 2018. Sales jumped 13 percent from 2018 to 2019.

Census region/division gallons: Midwest: 4.13 billion/East North Central: 2.19 billion

Propane autogas school buses/districts and contractors: Of an estimated 14,469 school buses in Ohio in 2020, 739 were fueled by propane, according to the Propane Education & Research Council. Like Michigan, Ohio has seen Volkswagen settlement funds shift to electric vehicles. Propane school buses still have done well in the state using Volkswagen and other funds, says Derek Dalling, executive director of the Ohio Propane Gas Association.

Market Pointers

Shawn Dawson, fleet manager of Westerville City Schools, says the district has saved over 40 percent in cost per mile for fuel and services after switching to propane-powered buses. (Photo courtesy of Ohio Propane Gas Association)

⦁ Ohio’s propane industry largely depends on the residential market, which accounted for 64 percent of retail gallon sales in 2019. A far second, the commercial market accounted for 15 percent of the total.

⦁ To combat proposed bans on fossil fuels in certain locales, the propane industry in Ohio partnered with the natural gas industry to pass legislation that enables consumers to choose their energy sources. Still, Ohio’s natural gas industry continues to pursue line extensions at the expense of propane, says Derek Dalling, executive director of the Ohio Propane Gas Association.

⦁ Ohio’s agriculture market ranks No. 10 in the U.S. for propane consumption. Farms are concentrated in northwestern Ohio.

⦁ An increase in rural home builds presents an opportunity for Ohio’s residential market, according to Dalling.

⦁ Key supply points are located outside of Toledo in northwestern Ohio. These terminals source much of their product from Line 5 in Michigan.

Fast facts

State association affiliation: Ohio Propane Gas Association (OPGA)/ohiopropanegas.org

Programs: The Ohio Propane Council state checkoff program is in its second full year of operation. The council plans to unveil an appliance rebate program for water heaters and furnaces by the end of the year. A statewide referendum of propane retailers will determine whether a checkoff of two-tenths of a cent per gallon will go into effect next year. OPGA membership is also working to establish a liability insurance membership benefit.

Marquee events in 2022: The Indiana, Michigan and Ohio propane associations are collaborating for the first time on the Great Lakes Propane Convention, scheduled for July 26-28, 2022, in Grand Rapids, Michigan.

Before COVID-19: The propane industry in Ohio had contributed about $2.3 billion to the 2018 state economy. It’s too early to assess COVID-19’s impact on the state’s gross domestic product.

“What we were seeing in Ohio was not necessarily statewide efforts to electrify Ohio, but several of the major urban areas and even some of the smaller towns were making edicts independently of each other.” – Derek Dalling, executive director of the Ohio Propane Gas Association, on the conditions that prompted Ohio’s consumer choice energy legislation

What’s the weather?

Average temperature (2020): 53 degrees F

Annual heating degree-days five-year average (2015-19): 5,406
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; Ohio Propane Gas Association; U.S. Energy Information Administration’s State Energy Profiles