With increasing supply, ultra-low-carbon fuel will be a “game changer”
Propane, with lower emissions than diesel and gasoline, has become a key tool for improving air quality around many of the United States' more than 300 ports. From terminal tractors to Class 7 forklifts, as well as generators and light- and medium-duty vehicles, propane-powered equipment is well suited for both sea and inland ports. Looking ahead, renewable propane represents the next step in decarbonization, offering ports a practical way to further reduce their carbon footprint.
Renewable propane is molecularly identical to conventional propane, and made from a variety of feedstocks, including camelina seed oil, vegetable oil, animal fats, and used cooking oil. It is a drop-in replacement for conventional propane, meaning customers can use renewable propane without additional infrastructure or costly new equipment.
That's why providers like Jeff Stewart, president of Blue Star Gas in Santa Rosa, California, are bullish about renewable propane. Home to the Ports of Los Angeles and Long Beach, California is also pursuing some of the nation's aggressive decarbonization goals, making it a key market for lower-carbon fuel growth. For Blue Star Gas's customers, Stewart says renewable propane will be "a dramatic game changer" as supply continues to increase.
According to the U.S. Department of Energy Alternative Fuels Data Center, U.S. renewable propane production capacity is more than 4.5 million gallons per year. Stewart said that number is expected to increase, and perhaps significantly. The World Liquid Gas Association adds that renewable propane could meet half of the world's propane demand by 2050. With distribution infrastructure already in place, this positions ports of all sizes to adopt renewable propane.
"It's not difficult to get renewable propane physically to a port," he said. "It uses the same infrastructure as conventional propane. The challenge at this point is really in the volume and production. But we are starting to see new producers coming into the marketplace, and as the volume grows, there will be more supply available for ports."
According to Stewart, renewable propane in the marketplace today is primarily a byproduct of the refining process for renewable diesel and sustainable aviation fuel. While a significant portion of renewable propane is generated at a facility in Louisiana, sites in California have recently transitioned to biorefineries and no longer rely on crude-based feedstocks.
Stewart reports that 20 percent of Blue Star's volume is renewable propane autogas — a form of propane used in vehicle applications and material handling. At the port, material handling remains the primary focus.
The U.S. Environmental Protection Agency (EPA) Ports Initiative is an incentive-based program designed to reduce emissions by encouraging port authorities and terminal operators to retrofit and replace older diesel engines with new technologies and use cleaner fuels, such as conventional and renewable propane.
Renewable propane has a carbon intensity score of between 20 and 43. This compares with a value of 80 for conventional propane and natural gas, both approximately 20 percent cleaner than gasoline and diesel (each at 100). At 130, the average score of the U.S. electrical grid is the highest among all options.
Because renewable propane offers the same reliability and power as conventional propane, it can dramatically accelerate a port's progress toward decarbonization while maintaining efficient operations and meeting tight deadlines for tasks like offloading ships.
For ports that want to begin using renewable propane, which is typically blended with conventional propane, the process should be planned carefully. That's why Stewart emphasized the importance of working with an experienced provider.
"If you want to start a trial, that can be supported right now," he said. "Depending on the volume and the eventual rollout, I think it will line up with the growth of the product."