Written on: June 23, 2025
Both conventional propane and renewable propane (rPG) are exceptionally versatile and affordable energy sources. These low-carbon gases serve a broad range of household and commercial functions, from heating homes and water to generating power and fueling low-emissions autogas vehicles.
One of the things that makes renewable propane so appealing is how fungible it is. You can blend rPG with conventional propane and use it in existing gas equipment without the need for burner replacements or modifications. In short, U.S. consumers are ready for more rPG.
But what about suppliers? Are rPG and other renewable biogases scaling up to expand availability?
Just as much conventional propane is a co-product of the crude oil refining process, renewable propane is predominantly created as part of the biodiesel and renewable diesel processes. The same products that serve as feedstocks for liquid biofuels can generate liquid biogases like rPG. These include used cooking oil, plant oils, animal tallow, municipal waste and woody biomass.
For a sense of relative output, consider the Bakersfield, CA, renewable fuels refinery of Global Clean Energy Holdings, which produces both renewable diesel and renewable propane from camelina oil. This facility’s renewable propane output comprises roughly 6% to 10% of its renewable diesel output.
Research into the development of renewable propane and other low-carbon liquid gases has been incredibly fruitful in recent years. In 2024, for example, an Illinois Institute of Technology (IIT) team developed a process for inputting carbon dioxide and electricity to develop rPG with a net-negative carbon intensity.
But development is one thing; the question is how these biogas products can scale. On this point, too, the future is promising.
As we have established, rPG production grows in tandem with other renewable fuels that are in the same pipeline. An analysis performed in 2024 by the U.S. Energy Information Administration estimated that the daily production of the “other biofuels” group — which includes rPG, sustainable aviation fuel, renewable heating oil, renewable naphtha and other emerging fuels — would surge from 19,000 barrels in 2023 to 51,000 barrels per day in 2025.
In 2021, the annual U.S. production capacity of rPG was 4.5 million gallons, and that capacity increased dramatically in the years that followed. The World Liquid Gas Association has stated that by 2050, rPG could fulfill half of the world’s propane demand.
Throughout the U.S., municipalities, businesses and even everyday homeowners are already shrinking their carbon footprint with the help of renewable propane. From city fleets in Raleigh to home heating systems in Maine, more consumers are accessing this low-carbon fuel.
The state of California, traditionally a leader in U.S. decarbonization efforts, has incentivized rPG production as a way to enable rural communities to embrace green energy without depending 100% on grid electricity. The federal government is investing millions to support research into bio-based energy sources, including rPG.
With so many news items and developments in the renewable liquid gas industry, it makes sense to have a consistent and engaged partner providing you with updates and resources. The Renewable Propane Alliance is that partner — please consider becoming a member.