Propane Set to Challenge Diesel Dominance in Power Generation Market by 2029

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The Propane Education & Research Council (PERC) has unveiled a bold initiative to increase propane’s share in the power generation sector. The council’s Market Growth and Commercialization Working Group aims to replace diesel power generation engines with propane by 12 percent by 2029. This ambitious goal translates to an additional 45 million gallons of propane entering the market.

Current research from the group reveals that engines with a capacity of up to 350 kilowatts dominate 80 percent of the diesel generator market. Propane is poised to make significant inroads in engines with capacities up to 50 kilowatts, which make up nearly half of the diesel generator market.

PERC’s working group considers the 12 percent market share target a conservative estimate. With the growing scale and efficiency of propane generators, surpassing the 45 million gallons mark is within reach.

Propane’s advantages include its cost-effectiveness and superior environmental profile compared to diesel. Although propane products are already available, ongoing partnerships with original equipment manufacturers (OEMs) are expected to enhance these offerings.

Looking ahead, the group plans to implement a strategic approach to boost market penetration. This involves identifying key contacts, such as rental companies and contractors, to effectively promote propane-powered solutions.

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