What does it take to launch into autogas?

Kyle McCalla is one of 19 propane retailers in the room, and at 27 years old he might be the youngest. McCalla is here, like the others, because he wants to know what it will take to get his company involved in propane autogas.

Surely, he’s excited about the market’s potential and the forecasts for autogas. ICF International, for example, is predicting annual sales of more than 40,000 propane-powered on-road vehicles by 2020. Subsequently, ICF International is expecting a related increase in propane consumption of more than 400 million gallons by that same year.

Some predictions are mind-boggling, and they’ve driven retailers like McCalla here today. McCalla, a commercial energy specialist at United Landmark LLC in Lancaster, Ohio, hasn’t made an autogas-related sale to this point. He’s had conversations with a few school districts that are considering converting buses, and he has contacts that can help United Landmark branch into propane-powered mowers.

Still, McCalla has more questions than answers. And judging from the room full of retailers on this day, so do the others.

“Basically the only thing standing in our way [from autogas] is ourselves,” says McCalla, in a phone interview following the Propane Education & Research Council’s (PERC) Marketer Technology and Sales Training seminar on propane autogas, hosted at Bergquist in Toledo, Ohio. “I want our company to be the source of information for our customers. If I go to a customer I want to have an answer, and if I don’t have an answer I want to be able to get back to them quickly.” Read more here.

PERC Releases 2013 Market Outlook

The Propane Education & Research Council (PERC) has released a report (prepared by ICF International) that provides a view of the challenges and opportunities for domestic propane markets through 2020. It also offers an update on the state of the propane industry, as well as looks at key market trends.

The study notes:
However, recent developments have improved the outlook for propane use in internal combustion engines. These developments include the availability of new emissions-certified engines, widening spreads between propane and conventional fuel prices, and the growing acceptance of propane vehicles by commercial vehicle fleet operators. With crude oil, gasoline, and diesel fuel prices projected to remain high to the end of the decade, propane’s price advantage should help drive continuing growth in the engine fuel segment. ICF is projecting propane vehicle sales to increase from fewer than 5,000 in 2011 to more than 40,000 per year by 2020, with the potential for much higher growth depending on national energy policy and the rate at which the propane industry choses to develop propane refueling infrastructure and promote propane vehicle sales.

Click here to download the report.

The Cost Conundrum

Looking at the big picture of investing in alternative fuels, the cost to beverage distributors will vary widely, but it can be very worthwhile.

Beverage companies need to consider a host of factors, including: how long they run their trucks, driver acceptance, how big their fleets are, how long they keep their vehicles, how many miles they put on them, the sizes in their vehicle fleet, whether they travel any long distances or just do local deliveries, the cost of infrastructure, the up-charge for alternative fuel vehicles, the cost of the fuels, what kind of fuel, creating an environment image in the community, the possibility of leasing, and how to handle maintenance.

It’s a major calculation that for most largely comes down to the cost of getting in vs. the savings from fuel costs. “The total investment is probably five-fold, not only the vehicle and the infrastructure, but the fuel, the maintenance of the vehicles, the maintenance and operation of the infrastructure, and then some of the soft intangibles like driver acceptance, mechanic acceptance, and that type of issue,” says Tucker Perkins, chief business development officer, Propane Education & Research Council. “With propane autogas, you have a competitive advantage in nearly every one of those areas.” Read more here.

Harnessing the Power of Alternative Fuels

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Propane industry chief talks gas's clean attributes

When the Propane Education & Research Council meets today in Portland, Roy Willis will be in his element.

Willis is the group's president and CEO, and he's very willing to talk about how propane is widely considered an alternative fuel form. To that end, his group earned notice recently by donating several propane mowers to the National Mall, in Washington, D.C.

The move aimed help cement propane's status as a clean fuel.

We snagged a few minutes of Willis's time and asked him to answer some questions about propane by email. Here's what he had to say.

CARB Approves Certification Changes

Natural Gas and Propane Autogas Upfits Made Easier,
But Agency Is Asked to Be ‘Nimble’ on Future Changes


As expected, the California Air Resources Board has approved changes aimed at substantially streamlining the certification process for propane autogas and natural gas vehicle upfits. The changes bring CARB’s requirements closer to those of the U.S. EPA.

The agency board voted unanimously last week in favor of the changes. But a key advocate for alt fuels in California, citing international competition and rapidly evolving technology, would like CARB to go further. Officials there, says Peter Ward of Alternative Fuels Advocates, should be able to make adjustments to the requirements without having to go to the Board each time.

The agency and the industry worked together to effect the current round of changes (the first substantial revision to the CARB requirements in 18 years), Ward says, and their continued cooperation and mutual interest should be encouraged. Read more here.

Texas School Districts Educated on Cleaner-Burning Propane at Annual Convention

DALLAS, TX--(Marketwired - September 30, 2013) - Texas school board leadership had the opportunity to learn about clean, American-made
propane autogas at the Texas Association of School Administrators (TASA) and Texas Association of School Boards (TASB) Annual Convention September 27-28 at the Dallas Convention Center. The Propane Council of Texas (ProCOT) participated with its awareness campaign, Fueling Texas, to educate participants about the benefits of operating school buses, administrative vehicles and commercial mowers on propane autogas.

"Propane autogas is a smart choice for Texas schools," said Jackie Mason, Educational & Marketing Director for the Propane Council of Texas. "Not only does propane lower harmful emissions and reduce fuel costs, but it has a proven safety record in Texas."

Propane autogas is the most widely used alternative fuel in the world. The clean-burning, domestically produced fuel is ideal for mowers, school buses, and other vehicles. School bus fleets that switch to autogas save anywhere from 30 percent to up to half on fuel costs. Propane-powered buses produce less particulate matter, carbon monoxide, NOx, hydrocarbons and greenhouses gas emissions than many school buses on Texas roads today.

There are more than 2,000 propane-powered buses operating in more than 75 Texas school districts. Some of these ISDs are benefitting from a 50-cents-per-gallon tax credit through 2013. Thanks to the tax credit, Dallas County Schools -- the largest propane-powered school bus fleet in the state -- saves about $500,000 annually. Northside ISD, the second-largest propane autogas bus fleet in Texas, saved around $225,000 with the credit from 2011, and Denton ISD recouped $170,000 in the same year. Read more here.