Report Identifies Significant Opportunities for Propane

The Canadian Propane Association (CPA) is welcoming the findings of a report by the Conference Board of Canada, which identifies propane as a versatile fuel with multiple end-use markets both at home and abroad. Further, with the extensive activities covered by the industry’s supply chain, the propane industry’s economic footprint across Canada is significant, supporting many jobs and generating millions of dollars in taxes and revenues.

“They are very much in line with what we’ve been seeing in the marketplace,” said Nathalie St-Pierre, CPA president and CEO. “Low-emission, accessible, and affordable propane will continue to be an important contributor to Canada’s economy.”

The release of the report provides the Canadian propane industry with robust data that demonstrates to government and the public that propane is an affordable, low-emission fuel that can help reduce greenhouse gas (GHG) emissions across the country in a variety of sectors. The report identified a series of market uptake opportunities for propane that can result in a marked boost to propane demand and sales across Canada and lead to a net reduction in Canada’s GHGs.

Key domestic growth opportunities for propane include transportation, indigenous and remote communities, and agriculture. The Conference Board anticipates that road transportation will be one of the fastest-growing demand sectors for propane. The third most popular automotive fuel in the world, propane has significantly less GHG emissions, lower maintenance costs, is cheaper than gasoline or diesel, and is safe and reliable with infrastructure coast to coast. These are key reasons why delivery fleets, police departments, and student transportation services are making the switch to propane.

CPA comments that the evolving environmental considerations and power generation needs in Canada’s remote communities make propane an ideal fuel to replace fuel oil and diesel. Abundant propane is accessible, is significantly lower in GHG emissions than traditional fuels, and has the additional environmental benefit of virtually eliminating spills.

CPA also sees the agriculture sector as a significant area of growth opportunity, which the report identified as increasing at the fastest pace among all end users. Propane’s portability and affordability make it an ideal fuel to power high-performance farms, from grain dryers to irrigation engines to greenhouse heaters. “For our industry, the report shows that propane has a vital role to play as governments develop policies that will result in an affordable, low-carbon future,” said St-Pierre.

(SOURCE: The Weekly Propane Newsletter, December 31, 2018)