Propane offers clean, cost-effective power to various port applications

By Matt McDonald

In recent years, environmental organizations and local governments have taken a closer look at the maritime industry and its environmental impacts. Port authorities and marine terminal operators have a unique responsibility to adopt sustainable practices while still enabling economic growth.

The equipment and energy sources chosen to keep ports running day-to-day can have a big impact on both the operation’s environmental footprint and their bottom line. 

Fortunately, propane can be a go-to energy source for many port applications. A trusted engine fuel for both the on-and off-road vehicles, propane’s versatility extends to both land- and sea-side applications. It can be used to power a variety of port applications including forklifts, light- and medium-duty vehicles, port and terminal tractors, shuttles, and small marine vessels. Beyond its versatility, propane can help ports comply with environmental regulations, reduce its environmental impact, and cut down on operational costs. 

Propane is a clean, low-emissions fuel

Many ports operate in or near some of the largest cities in the country, many of which face significant air quality challenges and, as a result, strict emissions regulations. Consequently, port authorities and marine terminal operators are looking to decrease the negative environmental impacts of their operation, which includes reducing harmful air emissions.  

The Environmental Protection Agency (EPA) estimates approximately 39 million people in the U.S. live in close proximity to ports. Because diesel is traditionally an energy workhorse of the American economy, these people can be exposed to air pollution output from diesel engines and be at risk of developing asthma, heart disease, and other serious health problems.

Switching to a cleaner fuel is one of the most effective strategies for emissions reduction, alongside replacing older diesel fleets and operational improvements to reduce idling, according to the EPA.  Many port authorities think the solution to lower emissions is to electrify their equipment. However, they may be surprised to learn that propane is a cleaner, more cost-effective energy solution compared to other options like electric, diesel, and gasoline.

Propane is non-poisonous and non-toxic, so it does not contaminate air, land, or water resources like gasoline and diesel can. It’s also an approved clean alternative fuel under the Clean Air Act of 1990 that can produce significantly fewer greenhouse gas emissions than diesel, gasoline, and electricity in a wide range of applications. 

For example, best-in-class propane forklift engines can produce 97 percent fewer NOx emissions when compared with similarly-sized diesel forklifts engines without any drop-off in payload or power, according to a study from the Propane Education & Research Council and the Gas Technology Institute. The same study revealed that propane forklifts are cleaner than electric equipment, too. In fact, propane can reduce SOx emissions by 76 percent. Electric equipment may produce zero emissions during normal operation, but its full emissions profile is often overlooked. It’s important to consider the emissions produced in the creation and transmission of electric batteries, including the emissions produced at coal-fired plants where electricity is generated, as well as the emissions output during transportation to the facility. 

Beyond propane material handling equipment, crews can help keep emissions low around the port by driving propane autogas vehicles, too, including work trucks, light-duty vehicles, and terminal tractors. According to data from the Argonne National Laboratory, propane autogas terminal tractors produce 12 percent fewer lifecycle greenhouse gas emissions than gasoline-fueled terminal tractors. Propane autogas vehicles reduce NOx emissions by up to 36 percent compared to diesel vehicles, greenhouse gas emissions by up to 22 percent compared to gasoline vehicles, and up to 45 percent less particulate matter than electric vehicles throughout the full fuel cycle. 

Propane is cost-effective, offering key bottom-line benefits

For operations of a port’s size and impact, small operational savings or improvements in efficiencies can have a huge impact over time. When calculating fuel and operating costs of different fuels, propane has proven to be the most cost-effective option over gasoline, diesel, and electric. 

When it comes to a port’s material handling equipment, propane forklifts are less expensive at acquisition than electric and Tier-4 requirements can add thousands of dollars to the purchase price of diesel equipment. Electric forklifts can be costly when you consider the utility costs of keeping them charged. Plus, electric forklifts’ battery life and power output diminish over time and lead to future costs that can go overlooked, including additional costly batteries.

An investment in propane cylinders and storage cages, on the other hand, can last decades. Beyond the initial equipment purchase and cost of fuel, companies are only responsible for buying and storing the cylinders — which can last up to three times as long as the average forklift battery. For more financial peace of mind, port authorities may also be able to lock in a fuel price with their local propane supplier.

Ports can see significant savings with propane autogas vehicles, too. In fact, propane autogas provides the lowest total cost-of-ownership of any fuel, thanks to its reliable performance and low costs for fuel, infrastructure, and maintenance. Propane autogas vehicles are typically less expensive to purchase than electric vehicles and ports can save up to 50 percent on fuel costs compared to gasoline and diesel. And because propane’s a clean fuel, there’s less unexpected maintenance, the fuel doesn’t corrode engine parts or require additional filtration and emissions systems, and there aren’t expensive add-ons to comply with emissions restrictions, like with diesel.

Refueling and recharging infrastructure costs should also be taken into consideration. The cost to install infrastructure for propane autogas vehicles with a single 1,000 to 2,000-gallon tank is up to $60,000, including as much as $36,000 for site preparation and equipment, and up to $24,000 for installation. For ports that need tanks larger than 2,000 gallons, the scalability of propane is another perk. Propane autogas refueling stations can easily grow to accommodate increasing fleet size with more fuel storage tanks or larger ones.

In comparison, the cost to set up electric vehicle infrastructure with five level 3 fast EV chargers can be up to $480,000, including as much as $200,000 for site prep and equipment, and up to $280,000 for installation. Electric infrastructure will often have additional costs for items like electric sub-panels, added amperage to power multiple stations, and upgrading and replacing incoming power lines.