Suburban Propane Leading the Charge in Renewable Energy Expansion
Key Ideas
  • Suburban Propane is pioneering renewable energy sales with a propane-renewable DME blend, expanding into biopropane, renewable natural gas (RNG), and hydrogen.
  • The company aims to reach a 10% maximum blend of rDME but currently delivers a commercial blend of 4%, ensuring it functions as a drop-in replacement without issues.
  • Suburban has sold over 1 million US gallons of renewable propane in California, facing challenges in scaling due to availability from producers and building relationships for supply.
  • Despite changing administrations, Suburban sees support for its renewable plans from both federal and state levels, focusing on domestic industry to drive their renewable platform forward.
Suburban Propane, a US LPG distributor, has become a trailblazer in renewable energy by introducing a propane-renewable DME blend in California in 2022. The company, headquartered in Anaheim, has also ventured into biopropane, renewable natural gas (RNG), and hydrogen. Suburban's vice-president of renewable energy, Douglas Dagan, shares insights on the company's renewable energy initiatives. Suburban has a strategic partnership with Oberon Fuels to produce rDME, with the current commercial blend at 4% and plans to reach a 10% maximum blend. They have received an exemption from the California Air Resources Board for pilot testing higher blend levels. The company has sold over 1 million US gallons of renewable propane in California and faces challenges in scaling due to availability issues. Despite uncertainties in regulatory environments under different administrations, Suburban remains optimistic about the future of its renewable plans. The company is also delving into the carbon intensity metric to aid policymakers in making informed decisions. Suburban's move into RNG and hydrogen production complements its core LPG business, with a focus on diversification and interconnected renewable energy products. Propane will remain a vital energy source for Suburban, especially in areas where grid decarbonization is challenging and during emergencies when grid failures occur.
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