The payback on industrial conversion from oil to propane gas (LPG)
No matter how you slice it, the potential energy savings of an industrial oil-to-propane conversion are exceptional. If we assume oil to be priced at roughly $3.50 per gallon, and propane at roughly $2.00 per gallon, propane offers approximately 45% more heat per dollar!
That's just the fuel cost. In addition, it's easier to place propane heaters closer to the point of use in a facility, thereby eliminating long runs of piping to deliver heat. Many oil-fired faciliites also utilize electric hot water heaters; converting these to propane can reduce water heater energy costs by 70%!
Many rural industrial facilities perceive themselves to be solely reliant on oil because of their location, where natural gas is unavailable. An energy-saving alternative that is growing in use is the installation of liquid propane (LPG) tank farms that offer all the benefits of natural gas. Typically, a rural facility can realize 30-40% energy savings through such an installation, but the installation costs can vary widely depending on the site location and logistics. A professional engineering cost analysis will determine whether the payback is worth the cost of the mechanical conversion.
Another factor in cutting oil costs is the dramatically reduced maintenance costs of using propane. Oil burners encounter more problems and require more maintenance.
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What do you think about oil to propane conversation for industrial use? We invite your comments! You may also e-mail questions or potential blog topics to blogfeedback@imec-us.com.
ABOUT JOE D’AMBROSIO
Joe D’Ambrosio is president and chief engineer of IMEC. An innovator in industrial and mechanical engineering, he has served as a consultant to the nuclear, petrochemical, biotech, semiconductor, electronic, food, power generating, and construction industries. He has created and conducted numerous training programs to educate industrial plant personnel, power generating advisors, and engineering consultants on a wide range of topics; and he has testified as an expert witness in industrial litigation.
D’Ambrosio became a nationally recognized expert in compressed air technology as CEO and chief engineer of Air Power of New England, where he led a staff of more than 50 employees and was a trailblazer in industrial service organization management. He is certified as an AirMaster+ by the Compressed Air Challenge, an initiative of the U.S. Dept. of Energy to build awareness of best practices in the design, installation, and maintenance of compressed air systems. He contributed to the creation of the Compressed Air Challenge’s Best Practices manual.
To satisfy a growing demand for industrial water recirculation system engineering and installation, D’Ambrosio founded Systems H2O in 2000. The turn-key design/build nature of these large energy-efficient projects led to opportunities as a general contractor for commercial construction requiring extensive heating and cooling systems. Systems H2O changed its name to IMEC (Innovative Mechanical Engineering and Contracting) in 2008 to better represent the company’s range of services. D’Ambrosio holds a Bachelor of Science degree in Physics from Boston College.