{"id":1820,"date":"2024-08-01T12:16:22","date_gmt":"2024-08-01T12:16:22","guid":{"rendered":"https:\/\/ladingcargo.com\/blog\/?p=1820"},"modified":"2024-10-18T12:25:35","modified_gmt":"2024-10-18T12:25:35","slug":"new-jerseys-take-on-propane-trucks-their-role-in-the-energy-transition","status":"publish","type":"post","link":"https:\/\/ladingcargo.com\/blog\/new-jerseys-take-on-propane-trucks-their-role-in-the-energy-transition\/","title":{"rendered":"New Jersey&#8217;s Take on Propane Trucks: Their Role in the Energy Transition"},"content":{"rendered":"<p>The energy transition in trucking revolves around a few key themes, often in tension: Diesel remains the dominant fuel due to its efficiency and infrastructure. Hydrogen holds promise as a potential replacement for long-haul trucking. Battery-powered trucks are suitable for smaller delivery jobs but struggle with larger vehicles like 18-wheelers. Meanwhile, electricity-powered drayage trucks are set to play a crucial role in upcoming shifts, particularly in California\u2019s ports.<\/p>\n<p>Propane has become a viable alternative fuel on the East Coast as of last week. The Port Newark Container Terminal (PNCT), part of the expansive Port Newark-Elizabeth Marine Terminal, demonstrated its commitment by introducing a new fleet of propane-powered tractors. These tractors are designed to transport containers between containerships and intermodal trains, showcasing propane&#8217;s practical benefits in a high-traffic port environment.<\/p>\n<p>At the formal launch of PNCT\u2019s first propane-powered vehicles, advocates highlighted a compelling argument supported by recent data from the Energy Information Administration. The U.S. produces a significant amount of propane but is underutilizing this domestic resource, exporting much of it instead. By developing new applications, there is potential to leverage more of this propane within the country.<\/p>\n<p>The United States generated roughly 2.4 million barrels of propane per day on average in April, sourced from both field production and refining, according to the most recent monthly figures released by the Energy Information Administration (EIA). In the same time frame, 73,000 barrels of propane were imported and 1.678 million barrels were exported from the United States.<\/p>\n<p>On the contrary, field processing and refining in the United States manufactured about 1.2 million barrels of propane per day in April 2014. Since then, the fracking revolution has substantially increased the amount of propane in addition to natural gas and crude oil.<\/p>\n<p>In the U.S., propane is primarily used for home heating, especially in rural areas not connected to natural gas grids. Additionally, propane finds use in other sectors; for instance, Suburban Propane (NYSE: SPH), the supplier of propane for PNCT\u2019s intermodal carriers, serves markets that extend beyond rural home heating.<\/p>\n<p>Using propane as a fuel for petrochemical production is another significant application. Natural gas liquids, such as propane, ethane, and butane, which are necessary for petrochemical production, have increased dramatically in the United States. This has contributed to the said sector&#8217;s notable growth.<\/p>\n<p>The current export-import balance shows there&#8217;s plenty of U.S. propane available that could be used right here at home, like for trucking.<\/p>\n<p>At the event, several propane-powered food trucks were on hand, drawing a good crowd from the PNCT workforce who came by for a free lunch.<\/p>\n<p>Charlie Ferlisi, the port\u2019s Director of Engineering and Equipment Services, shared that PNCT now has 20 propane-powered tractors out of a total fleet of 45. According to him, the number will likely double towards the end of the year.<\/p>\n<p>The propane tractors were made by Mafi, a German firm with a major parts warehouse in Georgia.<\/p>\n<p>Ferris explained that part of his job is to get equipment manufacturers on board with the initiative. He also mentioned that Mafi is already fully supportive.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ladingcargo.com\/blog\/new-jerseys-take-on-propane-trucks-their-role-in-the-energy-transition\/#Propane_Transition_Exceeds_Ship-to-Rail_Logistics\" >Propane Transition Exceeds Ship-to-Rail Logistics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ladingcargo.com\/blog\/new-jerseys-take-on-propane-trucks-their-role-in-the-energy-transition\/#Comparing_Outright_Cost_and_Total_Cost\" >Comparing Outright Cost and Total Cost<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Propane_Transition_Exceeds_Ship-to-Rail_Logistics\"><\/span>Propane Transition Exceeds Ship-to-Rail Logistics<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>He also highlighted that there are many other uses for propane within the port, not just for the intermodal tractors.<\/p>\n<p>Propane is yet to be acknowledged by California&#8217;s Advanced Clean Fleets (ACF) as a fuel with zero emissions. The ACF is hoping to switch to emission-free trucks by 2045. Although the rule was supposed to start this year, court delays have pushed back its implementation indefinitely.<\/p>\n<p>It is widely expected that the issue of whether the ACF needs a waiver from the Environmental Protection Agency will eventually be resolved, and the rule will be enacted into law.<\/p>\n<p>The biggest short-term change is that starting January 1, 2024, no new drayage trucks with internal combustion engines can be added to the state\u2019s registry. Only zero-emission vehicles will be allowed.<\/p>\n<p>Although the rule isn\u2019t being enforced yet and ICE vehicles can still be added to the registry, the state has indicated that once enforcement begins, these vehicles might not be grandfathered in. They may be pulled out of the registry.<\/p>\n<p>However, propane is not considered a zero-emission technology. Although Tucker Perkins, president and CEO of the Propane Education &amp; Research Council (PERC), highlighted its environmental benefits compared to other fuels, it still wouldn\u2019t meet the requirements for drayage trucks operating in California\u2019s ports.<\/p>\n<p>Perkins suggested that this situation might change.<\/p>\n<p>He shared a hopeful outlook for the future, believing that reason would eventually prevail and that people would recognize the clear scientific evidence. He noted that, in many areas, these vehicles are actually cleaner than electric ones. This perspective is supported by PERC\u2019s work with PNCT to integrate propane tractors into their operations.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Comparing_Outright_Cost_and_Total_Cost\"><\/span>Comparing Outright Cost and Total Cost<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Perkins admitted that if the only factor in switching from diesel to propane were fuel costs, the conversion wouldn&#8217;t happen.<\/p>\n<p>In a recent interview, he noted that the decision to move away from diesel is not primarily driven by cost considerations. The shift is rather motivated by the environmental challenges associated with diesel.<\/p>\n<p>He highlighted several important differences between diesel and propane, which he detailed in his official speech at PNCT. Propane costs less to store, produces 97% to 98% fewer nitrous oxide emissions, almost completely eliminates particulate matter, and generates 15% less greenhouse gas compared to diesel.<\/p>\n<p>PERC was established after the federal Propane Education and Research Act was passed in 1996.<\/p>\n<p>Renewable diesel has had a major impact in California, thanks to the state\u2019s low-carbon fuel standard, which provides credits that can be traded on the open market. Additionally, renewable propane, a by-product of the renewable diesel production process, is made from feedstocks like animal fats and vegetable oils.<\/p>\n<p>Perkins emphasized the advantages of renewable propane, extolling it as an excellent option for trucking. He noted that switching to propane benefits all stakeholders involved, including shareholders, operators, maintenance teams, and even neighbors.<\/p>\n<p>He predicted that the overall cost of operating with propane would eventually be lower than with diesel. Additionally, the benefits extend beyond merely replacing diesel with propane. Perkins further underlined that renewable propane offers continued advantages and, when compared to other promising alternatives like electric or hydrogen, propane performs well. Its economic advantages were highlighted as being stronger than those of the other options.<\/p>\n<p>According to Sydney Eick, U.S. Director of Sales for Mafi, certain modifications are required to develop a propane-powered engine, the engine size maintains the same footprint as a diesel engine. He has clarified that the trucks are not entirely custom-made; rather, they are available both as stock in the U.S. and on an order basis.<\/p>\n<p>He went on to say that many of the applications for which Mafi&#8217;s vehicles have been sold are localized, mentioning steel mills and distribution centers as key examples.<\/p>\n<p>Eick agreed with Perkins on fuel cost comparisons. He explained that if you ran two trucks side by side for an hour\u2014one on diesel and the other on propane\u2014the diesel truck would use around a gallon of fuel, while the propane truck would consume about 1.5 gallons.<\/p>\n<p>He further acknowledged that propane might not be as cost-effective purely in terms of fuel consumption. However, he pointed out that other factors, such as decarbonization, play a significant role. When considering all the numbers, he noted that the overall savings can be substantial.<\/p>\n<p>By leveraging their expertise and resources, <strong><a href=\"https:\/\/ladingcargo.com\/\">Lading Logistics<\/a><\/strong> aims to provide efficient and reliable international shipping and logistics solutions for their clients.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The energy transition in trucking revolves around a few key themes, often in tension: Diesel remains the dominant fuel due to its efficiency and infrastructure. Hydrogen holds promise as a&#8230;<\/p>\n","protected":false},"author":2,"featured_media":1821,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[131],"tags":[],"class_list":["post-1820","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New Jersey&#039;s Take on Propane Trucks: Role in Energy Transition<\/title>\n<meta name=\"description\" content=\"Discover how New Jersey\u2019s propane trucks are transforming port logistics and learn about propane\u2019s role in the future of trucking.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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