Propane to displace diesel power generation

The Propane Education & Research Council’s (PERC) Market Growth and Commercialization Working Group set the following goal to accelerate propane’s penetration of the power generation market:

By 2029, grow propane market share through the displacement of diesel power generation engines by 12 percent, which represents an increase of about 45 million gallons of propane.

The group’s research shows that engines with up to 350-kilowatt capacity account for 80 percent of the total diesel generator market. The best opportunities for propane can be found in engines of up to 50 kilowatts, which account for just under half of the diesel generator market.

The group believes a 12 percent increase in market share for propane is a conservative target. Growth in excess of 45 million gallons is possible as propane generators gain scale in the market.

Factors working in favor of propane include a lower cost and better environmental profile than diesel.

The group notes that partnerships with OEMs are in place to improve propane products in the space, but propane products are available today.

The next step for the group is to develop a coordinated strategy to gain market share, which includes identifying the right contacts, such as rental companies or contractors, to push propane products to market.

Read more about propane power generation:

• Propane generators stand ready at hospitals
• PERC director addresses propane’s role in power generation
• Types of propane power generation

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