Propane

Propane, also called liquified petroleum gas (LPG), is produced as a by-product of both natural gas processing and crude oil refining. It has been used as a transportation fuel since the 1940s. Today, there are approximately 200,000 propane-powered vehicles and over 3,000 fuel stations. Propane-powered vehicles include passenger cars, pick-up trucks and vans, as well as medium duty shuttles and delivery trucks. Off-road vehicles such as fork lifts and loaders also use LPG as a fuel. Propane emissions produce 60% fewer greenhouse gasses than gasoline powered vehicles. In addition, the price of propane is comparable to or lower than gasoline, and the fuel enables longer service life and extended maintenance intervals. Nonetheless, propane-powered and dual propane/ gasoline powered vehicles cost between $2000 and $4000 more than gasoline powered cars, and propane presents some unique storage and delivery safety challenges. Finally, since propane is a by-product of the oil and natural gas industries, the quantity produced cannot be adjusted easily in response to supply and demand.

How propane is produced: Propane is a by-product of both natural gas processing and crude oil refining, but usually is derived from natural gas. When natural gas is produced, it contains methane and other light hydrocarbons that are separated in a gas processing plant by combining increasing pressure and decreasing temperature. The natural gas liquid components recovered during processing include ethane, propane, and butane, among others. Propane and butane are also by-products of crude refining.

Sources:

• Department of Energy’s Alternative Fuels Data Center
• National Propane Gas Association’s FAQ on Propane Powered Vehicles
• Propane Education and Resources Council
• EPA Clean Alternative Fuels Fact Sheet