Propane Fuels America: Indiana – LP Gas : LP Gas

LP Gas’ annual Propane Fuels America series delves into how each state benefits from the propane industry. Here is our report on Indiana.

Total Odorized Propane Requirement (2019): 259 million gallons

U.S. rank for gallons sold: 13

Gallon Sales Trend: Indiana has been on the rise since sales of 195 million gallons in 2017 and 233 million in 2018.

Census Region / Division Gallons: Midwest: 4.13 billion / East-North-Center: 2.19 billion

Propane Liquefied Gas School Buses: Of an estimated 13,134 school buses in Indiana in 2020, 539, or 4.11 percent, ran on propane.

Market advisories

⦁ Indiana’s pro-small business and pro-energy environment lowers some of the regulatory and legislative hurdles seen in other states. This allows executives to focus more on propane-specific issues such as supply and pricing and winter readiness. Indiana Governor Eric Holcomb signed law earlier this year protecting propane from city gas bans.

Propane AutoGas LLC, a division of Propane People Inc., supplies fuel for more than 150 propane school buses operated by districts across Indiana, including those of the DeKalb County Central United School District. Photo courtesy of Roush CleanTech

⦁ Indiana sells about 60 percent of its propane gallons in the housing market. The industry is also gaining traction with consumers looking for resilience, reliability, and energy security in the face of a sometimes unstable power grid, says Matt Solak of the Indiana Propane Gas Association.

⦁ The state performed well in terms of funding opportunities through the Volkswagen settlement program. In the third round of funding, schools in Indiana are to receive 74 propane-powered buses for approximately $ 2.3 million. By comparison, the program is funding four electric school buses for around $ 1.2 million. In the first and second round, propane made up 17 out of a total of 62 projects.

⦁ In recent years, prior to the COVID-19 pandemic, Indiana was one of several states in the Midwest and South where manufacturing made up the largest proportion of the state’s employment. Columbus, Indiana is the home of global engine manufacturer Cummins Inc., which is partnering with the Propane Education & Research Council on a propane fueled engine for propane dispensing and other applications.

⦁ Only five US refineries can process more crude oil than the Whiting Refinery in Indiana (435,000 barrels per day), the largest inland oil refinery in the country. Indiana refineries produced 35 million gallons of propane in 2018.

Brief information

State Affiliation: Indiana Propane Gas Association (IPGA) /indianapropane.com

Programs: The association offers $ 150,000 in device discounts annually, said Matt Solak, executive director of IPGA. The most successful consumer-oriented programs for stoves and water heaters.

Marquee Events 2021-22: French Lick, Indiana Summer Convention; Hybrid Fall board, members, and committee meetings in Carmel, Indiana in November; and next year, Michigan and Ohio will host the Great Lakes Propane Convention from July 26-28, 2022 in Grand Rapids, Michigan.

Before COVID-19: Indiana’s propane industry contributed approximately $ 1.2 billion to the state economy in 2018. It is too early to assess the impact COVID-19 will have on the state’s gross domestic product.

“We are really using this program to develop our relationship with HVAC associations and industry, and to market propane to them and to builders. It’s been a big project for us lately – coalitioning and piggybacking on the success we’ve had with banning the bans and turning that into long-term growth relationships for the industry. ”- Matt Solak, IPGA, on his discount program for Ovens and water heaters

What’s the weather like?

Average temperature (2020): 53.3 degrees F.

Annual heating degree days, five-year average (2015-19): 5,448
U.S. average: 4,090

Sources: Propane Education & Research Councils National and US State Propane Market Profiles; Annual retail propane sales report; Propan.com; Indiana Propane Gas Association; US Energy Information Administration State Energy Profiles

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