Renewable propane is scaling up, but how far can we take it?
Jul 30, 2024
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Mike Stivala, President and CEO of Suburban Propane Partners, discusses the potential of renewable propane in revolutionizing energy use. He reveals that 100-300 million gallons could soon be available for homes, significantly reducing carbon intensity. Stivala addresses supply chain challenges and the $200 million investment driving renewable energy initiatives. He also explores leveraging existing propane networks for hydrogen distribution and the critical role of renewable natural gas in meeting future energy demands, emphasizing the industry's sustainable future.
Renewable propane has a significantly lower carbon intensity compared to conventional propane, playing a crucial role in sustainable energy efforts.
Suburban Propane Partners is investing heavily in innovative production methods and diverse technologies to meet future energy demands while utilizing existing infrastructure.
Deep dives
Sustainable Propane Production and Its Challenges
Renewable propane has a carbon intensity that is significantly lower than conventional propane, making it a vital component in the quest for sustainable energy. However, the main challenge lies in scaling up production and securing sufficient feedstock. Companies like Suburban Propane are actively working to overcome these hurdles while advocating for a broader understanding of propane's role in clean energy. Their efforts focus on establishing initiatives that position propane as a critical player in the transition towards more sustainable energy sources.
Investments in Renewable Energy Initiatives
Suburban Propane has committed substantial investments, such as $200 million in renewable natural gas, to enhance their sustainable offerings. They have created a subsidiary to manage interconnected portfolios in renewable liquid fuels, hydrogen, and renewable natural gas through anaerobic digestion. This includes advancements in renewable propane production, derived from waste fats and oils, emphasizing their goal to deliver cleaner energy without the need for overhauling existing infrastructure. The combination of renewable DME and propane is also being tested to further reduce carbon intensity without requiring new equipment for consumers.
Technology Agnosticism in Energy Transition
A technology-agnostic approach is deemed essential for achieving energy transition goals, allowing for innovation across multiple energy sources. Suburban Propane actively encourages the development of various technologies rather than focusing solely on electrification, which requires significant infrastructure investment. By leveraging existing distribution networks for renewable propane and exploring hydrogen as a future energy source, they can meet localized energy demands effectively. This strategy allows them to contribute to society's lower carbon expectations while maintaining resilience and energy security.
Future Perspectives on Energy Sources
Looking ahead, Suburban Propane aims to secure its role as a critical energy provider by investing in cleaner sources while leveraging its established infrastructure. The company views propane as not just a temporary solution but a significant contributor to future energy needs. Opportunities for renewable natural gas to replace traditional natural gas are recognized, as is the potential for generating clean hydrogen from renewable sources. The ongoing evolution of energy demands will be met through a diversified and innovative approach that capitalizes on existing capabilities and community needs.
Over 50 million homes in the US use propane. Within a few years, anywhere from 100-300 million gallons of renewable propane are expected to be available for homes and the transport industry. By 2050, renewable propane could meet half the world’s demand for non-chemical propane.
So, the demand is there, but are the means of production? Where is the feedstock coming from and how scalable are production methods? To answer this, we are joined by Mike Stivala, President and CEO of Suburban Propane Partners, a nationwide distributor of propane and renewable propane.
The benefits of renewable propane are clear: reliability, portability and power, but with four times less carbon intensity than its regular counterpart.
How is Suburban Propane Partners tackling the issues of supply chain? Where does Mike see the future of the sector and where is the investment coming from? Listen to find out.