Photo courtesy of Propane Education & Research Council

Meeting the energy demands of buildings of all types, during normal operations and times of power grid interruptions, can be done in numerous ways, including the use of propane.

Energy use in commercial buildings continues to be a primary concern of owners and managers of all types of facilities. There are issues of cost and reliability for continuous operations and future growth needs. While there is increasing attention on providing all-electric buildings, the current practical aspects of doing that haven’t yet met the idealized goal. Most electrical usage is based on utility grid-supplied power which is remotely generated and has some inherent inefficiencies and environmental concerns based on the type of fuel being used. On-site power generation is an option, but it needs to be looked at in terms of all of the options and particular constraints of a building and its site. This course looks at the issues related to commercial building energy use and specifically investigates the use of propane energy as a clean energy solution. Understanding propane as a fuel and the way it can be used in different building systems can actually lead to a cleaner solution than an all-electric design. All of this can be done today, without compromising the comfort or operational needs of a building or facility.

PROPANE ENERGY

Building owners, design professionals, and others who may not have used propane in the past, often have some predictable questions such as the following:

• What is Propane? Propane is a gas, sometimes known as liquefied petroleum gas, or LPG, that is normally compressed and stored as a liquid. Whether it is stored and transported in either a liquefied state or as a gas, it is an energy-rich hydrocarbon that is used in a variety of ways to provide energy to buildings, vehicles, and appliances. Environmentally, it is a cleaner alternative than other hydrocarbons and has been designated as a clean energy by the EPA¹. Propane is nontoxic, colorless, and naturally odorless—Mercaptan, an identifying odor, is added to propane so it can be readily detected.
• Where Does Propane Come From? Propane can come from several sources. It is primarily a byproduct of domestic natural gas processing. Some propane is produced from crude oil refinement. Renewable propane is produced from plant oils, animal fats, and cooking oils. Once refined, there is virtually no difference between LP gases processed from these sources. Over 99 percent of the propane used in the U.S. is produced in North America. Notably, the US exports more than twice as much as is kept and used for our own purposes. Currently, about 30 billion gallons are produced in the U.S. per year with 10 billion gallons used domestically and 20 billion gallons exported.
• What is Renewable Propane? Renewable propane has the same features as conventional propane but with even lower carbon emissions when compared with other energy sources. Unlike conventional propane, renewable propane can be made from a variety of renewable feedstocks. More and more renewable propane is being generated from the seed oil of the camelina plant. Also known as camelina sativa or false flax, camelina is a member of the mustard family and a relative of cabbage, kale, and cauliflower, but is not a food crop nor does it compete with food production.

Photo courtesy of Propane Education & Research Council

Renewable propane is becoming a viable alternative in some parts of the country and more production is expected as demand increases.

Dispelling Some Myths about Propane

There are a number of misperceptions or misunderstandings about propane which are addressed as follows.

• MYTH #1 - Propane is not safe for the environment. Actually, propane is considered to be very environmentally friendly. Propane is stored as a liquid, but when released into the air, it vaporizes and dissipates which means it won’t contaminate groundwater, drinking water, marine ecosystems, or other sensitive habitats. When vaporized, propane produces virtually no ozone-harming effects and unlike natural gas, it is not a greenhouse gas in its un-combusted state. Propane has a comparatively low carbon intensity for each unit of energy produced compared to other energy and fuel sources. Renewable propane has even less carbon intensity.
• MYTH #2 - Propane is not energy efficient. As a fuel, propane is extremely energy efficient, especially when compared to other fuels. Liquid propane has a higher energy density than ethanol, methanol, and liquefied natural gas, meaning propane-powered equipment produces more usable energy than most other liquid alternative fuels, assuming comparable equipment efficiency. When compared to electricity from the utility grid, it is important to recognize that electricity is a secondary energy product, generated using a primary energy source. There are inherent efficiency losses in converting the primary fuel into electricity, then distributing it long distances over wires, and then converting it into useful purposes in a building or facility. This means that one unit of useful electricity in a building may require up to three units of energy from the primary source – not highly efficient. Using propane on-site to produce useful energy is inherently more efficient since transmission losses and conversion losses are minimized.
• MYTH #3 - Propane is not more advantageous than diesel or petroleum. In fact, Propane has been shown to have a lower carbon content than electricity, conventional gasoline, and diesel fuel. That’s why propane is listed as an approved clean alternative fuel under the Energy Policy Act of 1992.
• MYTH #4 - Propane is not as safe as some other fuel choices. Propane has actually been shown to be very safe to use. NFPA 58 Liquified Petroleum Gas Code specifically covers everything from highway transportation of LPG to the design, construction, and operation of propane-based systems. This code has been used and followed for decades and has helped to ensure a successful track record of safety across the United States for propane.

Overall, propane is safely and efficiently used throughout the United States. It has been rated as a clean fuel by the federal government. There is a strong network of American producers and suppliers across the country that provide propane as a reliable, affordable, and abundant energy source.

Photo courtesy of Propane Education & Research Council

Propane is safely stored and transported without the environmental concerns of other fuels.

ELECTRICAL POWER GRIDS

Electric power is predominantly provided by established utility grids with electricity generated from power plants or other sources. While most people don’t see any sign of emissions, electricity from the grid is not necessarily the cleanest option for buildings—at least not until the electric grid is powered by 100% renewable, non-polluting, energy. Unfortunately, that remains a distant goal.

The U.S. Energy Information Administration (EIA) publicly reports annual data, with the latest numbers available from the year 2022 (October 2023 compilation). They identify three primary energy sources used by utility-scale electricity generation plants:

• Over 60 percent is still from fossil fuels including natural gas, coal, and petroleum products (2.5 trillion kilowatt hours generated).
• Just over 18 percent is from nuclear power (772 billion kilowatt hours generated)
• Only 21 percent is from renewables including wind, solar, hydropower, and biomass but has grown to exceed nuclear power (901 billion kilowatt hours generated).
• In addition, the EIA estimates that an additional, much smaller amount of 61 billion kilowatt hours was produced from small-scale solar photovoltaic systems in 2022. (Data source: U.S. Energy Information Administration, Electric Power Monthly, February 2024; preliminary data)

While the slow but steady growth of renewable energy is welcome news in light of efforts to reduce harmful emissions, the reality is that the grid is still over 60 percent powered by fossil fuels. This production of electricity from fossil fuels still contributes to global warming/ climate change, acid rain, and air pollution.

While full electrification of buildings is still a goal of many people in the interest of environmental improvement, the reality is that even electrification advocates admit full implementation will take over 20 years and cost about $20-$25 trillion. There is also considerable variation across the U.S. in terms of capacity, interconnectivity, and controllability. Further, the increased demand on the electric grid is currently causing issues with inadequate supply in many parts of the country. While the trend is definitely away from fossil fuels, the power industry isn’t there yet and it will take a while for the transition.