Fuels
A Brighter
Outlook
For Autogas
By Ed Burke, Dennis K. Burke, Inc.
WHY DO FOLKS IN THE “GREEN” COMMUNITY
think that propane autogas is poised for
growth as an alternative fuel?
Propane autogas has caught the atten-
tion of fleet and transportation managers
that are focused on the environment, eco-
nomics and energy security.
Our domestic energy market has cer-
tainly changed. But it’s the new development
of light- and medium-duty propane vehicles
for fleet use that triggered renewed interest
from the U.S. automakers. Many believe that
these new vehicle platforms will be a catalyst
for growth in the autogas industry.
WHAT IS AUTOGAS?
Propane autogas is a term for propane
when fueling an on-road vehicle. It is also
known as liquefied petroleum gas (LPG).
Globally, there are about 17 million propane
autogas vehicles in service. It is the third
most common engine fuel behind gasoline
and diesel.
One of the cleanest burning fossil fuels,
propane autogas is considered an alterna-
tive fuel listed in the 1990 Clean Air Act,
and the Energy Policy Act of 1992.
THE AUTOGAS NICHE
Propane autogas has several advantages
in the alternative fuel market. Good tailpipe
numbers, abundant domestic supply, and
an impressive number of fueling stations
with public access.
Currently, there are more than 270,000
on-road propane vehicles in the U.S., many
are used in fleet applications such as police
cars, shuttles and school buses.
There is an abundant domestic supply
of propane, produced as a byproduct of
both natural gas processing and the crude
oil refining process. About 97 percent of the
propane consumed in the U.S. is produced
in North America.
AUTOGAS VS. GASOLINE
Lower maintenance costs are one reason
behind propane’s popularity for use in
light-duty vehicles such as pickup trucks
and taxis; and for heavy-duty vehicles such
as school buses.
Propane has a higher octane rating com-
pared to gasoline, along with low carbon and
oil contamination characteristics. Autogas
vehicles typically experience extended
engine life with less frequent oil changes
when compared to gasoline engines.
Additionally, because the fuel’s mixture
of propane and air is completely gaseous,
cold start problems associated with liquid
fuel are reduced.
Compared to gasoline, propane autogas
has a smaller carbon footprint. By using
propane autogas, a vehicle’s environmental
impact is significantly reduced with 60
percent less carbon monoxide, 20 percent
less nitrogen oxide, and up to 24 percent
less greenhouse gas emissions.
AUTOGAS VS. CNG
A big selling point for the autogas
industry is their 2,586 public fueling sta-
tions across the United States. Propane
autogas vehicles can be refueled at both
on-site and public infrastructure. In com-
parison, there are only 578 public CNG
refueling sites and 32 public LNG sites.
CNG vehicles in commercial and
municipal fleets with limited driving dis-
tances could make economic sense because
they can benefit from shared refueling loca-
tions and infrastructure cost.
Propane autogas is a more affordable
option for smaller light-duty fleets. A CNG
fueling station installation typically costs
more than 10 times what a comparable
autogas fueling station would cost.
Your vehicle costs are less expensive too.
Autogas vehicle conversions are less than
comparable CNG conversions. The cost to
convert a light-duty vehicle from gasoline to
propane use ranges from $4,000 to $12,000.
The upfront costs to convert fleet vehicles to
propane can be offset by lower operating and
maintenance costs over the lifespan of the
vehicles. Conversion to a dedicated or bi-fuel
propane vehicle can be an attractive option.
Of course, the payback period would
depend on the average distance traveled
by fleet vehicles, and the fueling station’s
installation costs. Fleet vehicles typically
are high-mileage, high-fuel-consumption
vehicles operating in a limited area, so the
payback period on propane fleet vehicles
can be fairly quick.
AUTOGAS VS. HYBRIDS
Currently, more than 35 percent of U.S.
public transit buses use alternative fuels or
hybrid technology. Compared to hybrids,
the higher cost to convert a propane autogas
vehicle could make hybrid vehicles a more
cost-effective option to alternative fuels.
TAX INCENTIVES
The federal government and many states
offer programs to encourage the use of alter-
native fuels. There are tax credits and incen-
tives available for installing propane autogas
infrastructure. Additionally, fleet operators
are eligible for a 50 cents per gallon federal
tax credit or rebate for each gallon of propane
autogas the operator sells at the facility.
SUPPLY OPPORTUNITIES
Fleet and transportation managers looking
toward corporate stewardship will find pro-
pane autogas a sustainable choice. With an
industry well prepared with a good founda-
tion for market growth, propane autogas has
the potential to become a dynamic player in
the growing alternative fuels arena.
36 • OIL
&
ENERGY
