The Importance Of Demand For Renewable Propane

Written on: December 1, 2020

clean fuel propaneAs the conversation about renewable propane gas intensifies across the industry, the demand angle—and all that comes with it—must be taken into consideration. At this point in time, the production capacity for renewable propane far exceeds the fuel’s actual output. Demand hasn’t caught up to make renewable propane gas a profitable product, especially in the residential and commercial market sectors…YET.

Here’s a look at key milestones the industry needs to achieve as we forge ahead in the world of renewable propane.


Overall, public awareness around renewable propane is quite limited. Producers of other renewable fuels, such as biodiesel, have the capacity to produce renewable propane as part of their refining process, but right now they have no reason to do so because propane retailers aren’t asking about availability or trying to order it.

Propane retailers and wholesalers alike aren’t buying—or even demanding—renewable propane. Their unanswered questions include:

Meanwhile, consumers seeking a renewable energy source also don’t know that renewable propane is an available energy option for residential as well as commercial needs. The Renewable Propane Alliance strives to help build that awareness and connect interested parties. As this goal is achieved, the renewable propane gas that is now flowing at a trickle can begin to flood the market.


The question of “when” is a big one. And the answer depends on how well industry stakeholders will work together to raise awareness about renewable propane. It is likely that a year or two from now, renewable propane will be in a much stronger market position than it is now.

Advocacy And Industry Support

Government agencies and lawmakers have a considerable amount of lobbying work to do in order to ensure that renewable propane has parity with other renewables such as wind, solar and biodiesel. This is particularly important when it comes to subsidies, grants and other funding sources to help offset higher production costs. 

Benefits of Increased Demand

Ultimately, the question we need to answer is, What are the benefits of increased demand? 
It’s clear that increased demand makes renewable propane affordable for all markets that want to transition to renewable energy sources. Renewable propane doesn’t need to be less costly than traditional propane, however, the price spread can’t be unaffordable.

As each of these factors gains the attention it deserves, overall demand for renewable propane as America’s Future Energy Solution will gain the momentum it needs to position this safe, clean and green fuel among the other major players in the industry.

We’d love to hear from you! Contact us with your questions or comments about renewable propane!