‘New’ renewable fuels present opportunities for the propane and energy industries to diversify their offerings, meet evolving customer needs, and continue providing reliable energy solutions.
The energy industry is changing, but change does not necessarily mean leaving behind the fuels and infrastructure that have served customers well for decades. Instead, it creates an opportunity to build on what we already know and expand the role that propane and other liquid fuels can play in a lower-carbon energy future.
Two fuels receiving increasing attention are renewable propane and renewable diesel. While each has unique characteristics and applications, both represent opportunities for the propane and energy industries to diversify their offerings, meet evolving customer needs, and continue providing reliable energy solutions.
Understanding Renewable Propane
Renewable propane is produced from renewable feedstocks rather than traditional fossil-based sources. Depending on the production pathway, these feedstocks can include materials such as vegetable oils, animal fats, and other renewable resources.
One of the most interesting aspects of renewable propane is that it can perform similarly to conventional propane. This creates an opportunity to utilize existing propane equipment, infrastructure, storage, transportation, and distribution systems with fewer changes than might be required when transitioning to an entirely different energy technology. For propane marketers, that distinction is important.
The industry has spent decades developing an extensive infrastructure and a skilled workforce capable of safely storing, transporting, delivering, and utilizing propane. Renewable propane provides a potential pathway to leverage those existing capabilities while incorporating a renewable component into the fuel supply.
The availability and production scale of renewable propane will ultimately influence how quickly the market can expand. However, continued development of renewable fuel production creates opportunities for propane marketers to participate in the conversation with customers who are looking for lower-carbon energy options.
Renewable Diesel: Another Opportunity
Renewable diesel is another fuel gaining attention across transportation, agriculture, commercial, and industrial markets.
Unlike biodiesel, renewable diesel is produced through processes that result in a fuel chemically similar to petroleum diesel. It can be used in many existing diesel engines and equipment applications without requiring the same type of infrastructure changes associated with completely new technologies.
For businesses that rely heavily on diesel-powered equipment, renewable diesel can provide another option for reducing the carbon intensity associated with their operations while maintaining familiar equipment and operating practices.
This is particularly relevant in industries such as agriculture, construction, transportation, and backup power generation, where reliability and equipment compatibility remain critical considerations.
The Opportunity for Propane Marketers
The conversation around renewable fuels should not simply be viewed as a threat to traditional propane sales. It can also be viewed as an opportunity to expand the role of the energy marketer. Customers are increasingly asking more sophisticated questions about their energy consumption. They want to understand cost, reliability, emissions, resiliency, and long-term sustainability. In many cases, there isn’t one technology or one fuel that solves every problems. That creates an opportunity for marketers to become more than fuel suppliers. We can become energy solution providers.
One customer may need propane for heating, renewable diesel for certain equipment, and a combined heat and power system to improve onsite energy resiliency and efficiency. Another customer may benefit from propane-powered equipment today while exploring renewable fuel options as those products become more widely available at a later date.
The key is understanding the customer’s application first and then matching the appropriate technology and fuel to the need.
Connecting Renewable Fuels with Distributed Energy
This broader energy perspective is especially important as businesses evaluate distributed generation, micro-CHP, backup power, and other technologies designed to provide energy closer to where it is consumed. Combined heat and power is one example. Systems such as EC Power’s micro-CHP technology can simultaneously produce electricity and useful heat from a fuel source. Instead of thinking about energy strictly as “fuel versus electricity,” CHP encourages us to look at the entire energy picture: What does the customer need? How much electricity do they consume? What are their thermal loads? What are their operating hours? How important is resiliency? And how can we maximize the value of the fuel being consumed?
As renewable fuels continue to develop, those conversations become even more interesting. A propane marketer’s role can evolve from simply delivering gallons to helping customers determine how those gallons fit into a larger energy strategy.
Why This Matters for the Future
The transition happening in energy is not necessarily a race toward a single fuel or technology. It is becoming increasingly clear that the future will likely include a combination of solutions. Electricity, natural gas, propane, renewable propane, renewable diesel, biodiesel, Bioheat® fuel, solar, battery storage, CHP, and other technologies can each serve different applications.
The challenge and opportunity for our industry is to remain knowledgeable and adaptable. Renewable propane and renewable diesel give the industry additional tools to bring to customers. They can help us have meaningful conversations about sustainability without losing sight of the things customers have always valued: reliability, safety, affordability, and service. For propane marketers, this means continuing to learn about emerging technologies and fuels, developing relationships with manufacturers and technology providers, and understanding how these products can work together. It also means asking better questions: What does the customer actually need? What are their current energy costs? What are their operational requirements? Where are their biggest challenges? What role does resiliency play? What are their sustainability goals? And perhaps most importantly, what solution makes sense for their specific application?
Looking Ahead
The energy industry has always demonstrated an ability to adapt. From new appliances and more efficient equipment to telemetry, remote monitoring, and innovative energy technologies, the industry continues to evolve.
Renewable propane and renewable diesel are another step in that evolution. Rather than viewing the changing energy landscape as a reason to move away from what we know, we can view it as an opportunity to expand what we offer. The future of energy will require flexibility, innovation, and a willingness to look beyond traditional boundaries. Marketers are uniquely positioned to participate in that future because we already understand the importance of delivering energy safely, reliably, and efficiently.
The opportunity ahead is to take that knowledge and apply it to a broader energy conversation. Renewable fuels aren’t simply about changing what is in the tank. They are about expanding the possibilities for how the energy industry can serve customers in the years ahead.
Amy Berg is the Director of Marketer Growth Solutions for Power Generation at Bergquist Inc., bringing nearly a decade of experience in the energy industry. Since beginning her career in 2018, she has held roles spanning sales, distribution, business development, and customer solutions, focusing on building strong relationships and identifying practical solutions for energy customers. In her current role, Amy leads power generation initiatives, helping marketers explore new opportunities and expand their businesses. She also serves on the Boards of Directors for the Iowa Propane Gas Association and the Rocky Mountain Propane Association and is passionate about advancing innovation and growth within the propane industry.
