What’s Next for Propane?

Heading to the NPGA Expo, we look at several new technologies and solutions already in the market or under development

In a time of uncertainty, there is opportunity, and the propane industry will attend the 2025 NPGA Southeastern & International Propane Expo™ in April, 2025, ready to address both.

Many of the questions about the future may be answered by the Expo, as the initial 30-day pause on President Trump’s 10 percent tariff of energy products from Canada will have passed. In advance of any decision, the National Propane Gas Association (NPGA) and the Canadian Propane Association (CPA) issued a Joint Statement affirming their commitment to energy security:

“The U.S. and Canadian propane industries are vitally intertwined and provide home heat to millions of Americans and Canadians, primarily in rural areas. We are committed to safety, reliability, and providing a low-emission and economical energy solution.

“Canada supplies one of every seven barrels of propane used in the United States. And equipment and parts vital to keeping costs down on both sides of the border are sourced from around the world.

“The National Propane Gas Association (NPGA) and Canadian Propane Association (CPA) are committed to working with American and Canadian leadership to ensure that our citizens continue to have access to affordable and reliable energy, especially during the coldest North American winter in a decade.

“NPGA and CPA will continue to monitor ongoing tariffs and work with member companies to analyze their impact.”

NPGA has also recently presented to the National Association of State Energy Officials (NASEO) Energy Security Committee on the tariffs and their potential implications.

Heroic Disaster Relief Efforts

However, at the moment, the propane industry and the NPGA Expo are focused more on community, advances in technology and opportunities for growth. As the congressionally authorized nonprofit for propane safety, training and development programs, the Propane Education & Research Council (PERC) will have a large presence at the Expo, hosting several education sessions, including: “Grow Your Business with the Latest Marketing Resources from PERC,” “PERC’s Safety and Educational Updates,” “Building a Safety Culture in the Propane Industry,” “Propane’s Role in Responsible and Sustainable Energy Diversification in Power Generation,” and “Propane Alternative Technologies for Gallon Growth Opportunities.”

Tucker Perkins, PERC President and CEO, will be providing the PERC Update, and will reflect on the “historic 2024 hurricane season” and call upon the industry “to channel the energy that fuels heroic disaster relief efforts into two areas: seizing the momentum of emerging growth opportunities and fostering a culture of safety in every aspect of its operations.”

The power of propane and propane distributors to make a difference will be a theme in many of PERC’s presentations. According to Bridget Kidd, PERC Chief Operating Officer, “Communities rely on propane marketers. In the wake of natural disasters, propane is a solution: supporting first responders, powering generators. There’s a propane marketer in every community who’s an expert on how to access propane and get the propane where it’s needed. These local businesses are a resource for first responders, to ensure that their solutions are provided safely. The industry stands ready when there’s an emergency but also to provide the exceptional service when it’s not an emergency to the homeowner who needs heat and hot water every day.”

Shiny New Objects

Kidd is looking toward innovations like the “soil steamer” developed with U.C. Davis, which heats soil and reduces the use of chemical treatments for agricultural products such as strawberries and lettuces; and heat pump solutions - an innovation for homeowners who have heat pumps which leverages a propane water heater or boiler for supplemental heat in colder temperatures. While not “new,” these solutions have been repackaged to make it easier for consumers.

The Council is also partnering with national laboratories and institutes of higher learning for research on advances in renewable propane, carbon capture, feedstocks, and other ways to make renewable propane scalable. Kidd is confident that this research will be able to continue in the near future, so that propane can meet its goal of satisfying half of the world’s propane demand with renewable propane by 2050.

“Where we see the most growth, the most need, is power generation. We were at the PowerGen show in Dallas in February. Meeting the demands for electricity in a way that’s sustainable and reliable is absolutely vital. Our teams are working on development of Combined Heat and Power (CHP) systems, Heat and Cooling Systems, and sophisticated towable generators to meet that demand,” Kidd explained.

To prove the value of these new systems, PERC launched the Alternative Technology Demonstration & Research Program (AltTech) on January 1, 2025, which offers compensation to commercial and industrial businesses which contribute data on propane-powered cooling and CHP systems. Participants install pro-pane CHP or cooling equipment in their buildings, and then complete a survey detailing performance, emissions, gallon usage, run hours, cost, data, and energy savings. “AltTech gets our equipment into the buildings, the buildings see the benefits, and PERC gets actionable data that can be used to shape and enhance our technology.”

The transportation sector offers several new and growing opportunities. Transportation is responsible for approximately 28 percent of U.S. greenhouse gas emissions, making it one of the largest contributors by industry sector. Of that, according to the EIA, 57 percent of emissions are from Light-Duty vehicles. The transportation sector is, according to Kidd, “the greatest opportunity for all fuels to make a difference in emissions.”

The “shiny new objects” in this space, according to Kidd, are charging stations that generate power for electric vehicles and other applications using propane in off-the-grid situations, or where the local utility is not able to meet demand. These are mobile charging stations that can be used in remote or off-grid locations, during weather or electric power emergencies, or for EV fleets. PERC claims that these charging stations can be established within 24 hours.

Propane autogas is another growth opportunity. Kidd says that “propane is the only alternative solution that is scalable. There is a right solution for every fleet, but autogas can work for companies with five vehicles or 500. Even with the more stringent regulations coming, and we know there’s uncertainty about them, but propane can achieve those new standards, and the businesses’ needs, and they won’t have to spend a lot of money for solutions that aren’t reliable.”

PERC sees the combination of propane-powered charging stations and propane autogas as an unmatched solution for fleets, noting that propane-powered charging stations provide a quick and affordable solution to recharging EVs, and propane autogas vehicles can rapidly refuel and return to the road. “In a time when resilient energy sources are crucial for fleets, propane provides reliability,” their website proclaims.

In the end, Kidd circles back to the power of human connections and determination. “I would say that we’re really proud of how the industry has responded in the wake of these natural disasters, the devastation from Helene, Milton, and the wildfires. It’s been daunting all across the country, and our industry and technology has helped. Without our propane-specific solutions, we’d all be in a much different place. We also haven’t had a winter this cold in years. We’re proud of how the industry has come together in support of its customers,” she concludes.

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