When Palmer Gas & Oil (PGO) began planning a ribbon cutting for its latest propane storage facility, the obvious date of the event could only be National Propane Day, or Oct. 7. Like any good propane marketer, PGO celebrates the day dedicated to recognizing the incredible value propane brings to homes, farms and businesses across its service area.
National Propane Day also provides the chance to thank and appreciate the people — the technicians, drivers, engineers, safety experts and countless others — who keep propane safe, available and accessible every single day. It also opens awareness and educates the community on the vast benefits of propane.
Of course, that date is especially significant for PGO, as PGO’s own Charlie Ermer, fourth-generation marketer, was one of the original champions of National Propane Day.
In addition to announcing the opening of its new propane storage facility, PGO chose to start the renewable propane conversation in its service area by having a load of renewable propane delivered during its ribbon-cutting event — the first company in southern New Hampshire to do so.
This milestone stands as a testament to the importance of renewable propane as the industry takes steps toward a more robust renewable market.
Through PGO’s experiences with renewable propane in this setting, propane marketers can gain insights on introducing the concept to customers and keeping an eye on fluctuations in price and demand.
Starting the Renewable Propane Conversation
Using National Propane Day as a springboard, PGO wanted to make a statement to its customers and community that highlighted its investment in renewable propane, a fuel that offers the reliability of traditional propane with a dramatically reduced carbon footprint.
This new facility in New Hampshire, consisting of four 45,000-gallon tanks, coupled with the fact that renewable propane does not require any additional equipment to use, transport or store, illustrates PGO’s — and the propane industry’s — commitment to start making renewable propane more available to communities across its service area.
Introducing the Concept
The goal of this initial delivery was to slowly start introducing PGO’s customer base to renewable propane. PGO’s customers range from modern new construction residences in the middle of a densely populated city, to historic homes and farms nestled at the end of dirt roads, as well as many commercial businesses such as restaurants, schools and churches.
Though New Englanders are well-versed in the use of propane to heat their homes and fuel their generators, renewable propane is neither widely known nor generally discussed. Propane is viewed as a cleaner alternative to other fossil fuels but isn’t necessarily viewed as “green.”
In starting the conversation, it was important to highlight the benefits of renewable propane: It offers the same cost efficiency, energy efficiency and resiliency benefits of propane but at significantly reduced carbon emissions, making it an ultra-low carbon option. Because it has the same molecular structure, efficiency and output as conventional propane, renewable propane can be used in any propane appliance without modification.
And finally, because renewable propane is domestically produced, it supports American jobs by reducing reliance on foreign energy.
Introducing renewable propane allowed PGO to start educating its customers in the hopes of opening a new market as renewable propane becomes more well-known.
Poised to Meet Demand — When Demand Happens
Though PGO has the storage, trucks and people-power to support a move to renewable propane, that does not necessarily mean the company is ready to immediately roll it out across all service areas. PGO plans to take a wait-and-see strategy as relates to a renewable propane roll out — a strategy that may feel familiar to other marketers in the U.S. as the renewable propane market tests its strength.
Due to the higher production costs of manufacturing renewable propane, the cost per gallon is currently more than conventional propane. With customers already extremely cost-focused, forcing a higher-priced product on all of its customers — who may or may not be environmentally conscious — could prove to be damaging to the current customer base.
And while segregating a truck and a storage tank for renewable propane for those customers for whom the environmental benefits offset the higher costs, it is not a cost-effective strategy for a marketer to drive 60 miles to deliver to one or two houses by request.
Of course, as with anything, as demand grows, prices will drop. Likewise, with the current research taking place and improvements in manufacturing processes, costs are also expected to decrease.
PGO’s strategy is to continue to bring the concept (and reality) of renewable propane to the forefront by featuring it in its newsletters, emails, on its website and by providing internal training to its own employees so they can contribute to the conversation that was started.
Join the Conversation
Renewable propane is not a buzzword. It is a bridge to a low-carbon future — produced from sustainable sources like plant oils, animal fats and even recycled waste. It is already being used to reduce emissions in transportation, agriculture and residential heating. Thanks to its newest facility, PGO is starting the conversation within its service area.
As an industry, it is time we all celebrate real, measurable progress toward energy independence, environmental responsibility and economic opportunity. PGO is proud to be part of an industry that is evolving, proud to be contributing to a cleaner energy mix and proud to open a facility that will fuel innovation for decades to come.
PGO challenges all U.S. marketers to start having conversations with their own customers. Let us all start talking openly and often about renewable propane.
