Sponsored by: A COMPARATIVE ANALYSIS OF GREENHOUSE GAS EMISSIONS FROM PROPANE AND COMPETING ENERGY OPTIONS Prepared by: A Subsidiary of VSE Corporation 2014 Acknowledgements This report was sponsored by the Propane Education & Research Council (PERC) and prepared under the direction of Greg Kerr, Director of Research and Development at PERC. Ross Brindle, Jared Kosters, and Lindsay Pack of Nexight Group and Matt Antes, C.W. Gillespie, and Beth Zotter of Energetics Incorporated prepared this report. Table of Contents Executive Summary ..............................................................................................1 Purpose of this Report .........................................................................................5 About Greenhouse Gases and Climate Change ............................................7 Greenhouse Gases and Criteria Air Pollutants ........................................................................8 Upstream vs. End-Use GHG Emissions ....................................................................................8 Methodology ...........................................................................................................11 Basis for Comparison of Emissions by Application ...............................................................11 Upstream Emissions Analysis .....................................................................................................11 End-Use Emissions Analysis ........................................................................................................13 Summary of Findings ...........................................................................................15 Application Overview ......................................................................................................................16 Residential Space Heating ............................................................................................................18 Residential Water Heating ............................................................................................................20 Commercial Space Heating and Cooling ...................................................................................22 Commercial Water Heating ..........................................................................................................24 Combined Heat and Power ...........................................................................................................26 Generators .........................................................................................................................................28 Irrigation Engines.............................................................................................................................30 Mowers ...............................................................................................................................................32 Terminal Tractors .............................................................................................................................34 Forklifts ...............................................................................................................................................36 Type A/C Buses ................................................................................................................................38 Bobtail Trucks ...................................................................................................................................40 Light-Duty Trucks ............................................................................................................................42 Utility Cargo Vans ............................................................................................................................44 Appendix A. List of References ..........................................................................47 Appendix B. Sensitivity Analysis .......................................................................53 Upstream Emissions Factors .......................................................................................................53 Sensitivity of Efficiency and Other Variables ..........................................................................54 Appendix C. List of Acronyms ............................................................................57 Comparative Analysis of Greenhouse Gas Emissions from Propane and Competing Energy Options | i ii | Comparative Analysis of Greenhouse Gas Emissions from Propane and Competing Energy Options Executive Summary Energy production and use generates amount of energy required to perform a useful greenhouse gas (GHG) emissions that task, such as heating a home, the study’s can contribute to climate change. While methodology also considers efficiency, which government and business leaders as well can vary significantly depending on the energy as consumers are increasingly concerned source used. with climate change, they also understand that energy plays an essential role in daily The results of this study show that propane life. As a result, many leaders are currently is a low-carbon fuel source that produces seeking ways to reduce GHG emissions while fewer greenhouse gas emissions than many also promoting economic development and competing energy options in a wide range consumer choice, and many consumers are of applications. Propane’s chemistry—its taking more of an active role in determining molecular structure—provides it with relatively their personal energy mix. In order to make low carbon content compared to liquid fuels informed choices in this area, these decision- like diesel and gasoline and compared to makers require unbiased, credible information electricity, much of which is generated from about available energy options. coal in the United States. As a result, propane is a favorable energy option across the market This study aims to provide both leaders and areas featured in this study, as demonstrated consumers with the type of information they by the graphs in Figure ES1. need by quantifying the greenhouse gas emissions produced by the use of propane Energy choice is a complex issue. Greenhouse and other energy sources in 14 selected gas emissions are just one of the many applications important to the U.S. propane factors that decision-makers must consider industry. These applications cover the major when weighing their energy options; factors propane markets: residential buildings, such as cost, performance, reliability, and commercial buildings, off-road applications, safety also play a significant role. As leaders on-road vehicles, and agricultural applications. and consumers grow increasingly aware of The study’s methodology considers not only the potential impact of their energy choices, emissions generated at the point of use but their access to sound information about their also all upstream emissions produced during options will grow increasingly critical as well. the extraction, production, and transportation The results of this study offer new insights of each energy source. Because equipment that can aid decision-makers considering efficiency plays an important role in the propane as a low-carbon energy source. Comparative Analysis of Greenhouse Gas Emissions from Propane and Competing Energy Options | 1 Figure ES1. Comparative Analysis of GHG Emissions from Propane and PROPANE ELECTRICITY Competing Energy Options (GHG emissions relative to propane = 1.00) FUEL OIL 2.20 1.87 1.64 1.56 1.58 1.56 1.27 1.28 0.83* 1.00 1.00 0.85 0.82 0.74 0.58 0.26 Heat Pump Furnace Baseboard Solar with Generic Best available Generic Best available propane storage storage heater tankless tankless heater backup heater heater RESIDENTIAL RESIDENTIAL SPACE HEATING WATER HEATING *Electric air source heat pump with propane furnace backup 1.99 1.95 1.97 1.54 1.39 1.39 1.19 1.32 1.00 1.16 1.00 0.88 1.00 0.90 0.68* 0.71 0.44 Ammonia Electric Furnace & Gas-fired Generic Best available Generic Best available absorption heat electric central heat storage storage heater tankless tankless heater heat pump pump air source air pump heater heater conditioner COMMERCIAL SPACE COMMERCIAL HEATING & COOLING WATER HEATING *High-efficiency electric heat pump 2 | Comparative Analysis of Greenhouse Gas Emissions from Propane and Competing Energy Options PROPANE ELECTRICITY DIESEL E85 NATURAL GAS GASOLINE FUEL OIL 1.80 1.34 1.25 1.16 *1.05** 1.12 1.00 1.00 1.00 0.91 0.88 Engine- Microturbine Grid Residential Grid 100 Horsepower driven microCHP electricity back-up electricity Irrigation Engine microCHP for heat generators and power COMBINED HEAT GENERATORS IRRIGATION & POWER ENGINES *Propane irrigation engine **Propane and diesel dual fuel irrigation engine 1.20 1.22 1.14 1.00 0.93 1.00 1.05 0.96 1.00 1.03 0.71 0.76 Generic Generic terminal tractor Generic forklift mower MOWERS TERMINAL FORKLIFTS TRACTORS Comparative Analysis of Greenhouse Gas Emissions from Propane and Competing Energy Options | 3 PROPANE ELECTRICITY DIESEL E85 NATURAL GAS GASOLINE FUEL OIL 1.22 1.22 1.02 1.13 1.06 0.87 0.97 1.00 0.93 1.00 1.00 1.05 Generic Type A Bus Generic Type C Bus Bobtail truck TYPE A/C BOBTAIL BUSES TRUCKS ** ** ** * **1.11 1.13 *1.03 1.11 1.13 0.97 1.00 1.00 1.03 1.03 0.87 0.97 0.98 1.00 1.00 0.87 Generic light-duty truck Generic utility cargo van LIGHT-DUTY UTILITY TRUCKS CARGO VANS *Light-duty truck with propane conversion kit *Utility cargo van with propane conversion kit **Gasoline bi-fuel light-duty truck **Gasoline