Michael Kanellos | November 7, 2008 at 8:20 AM 1 Comments

ConocoPhillips to Let Drivers Fill Up on Propane

Getting the major gas station chains to start serving up alternative fuels hasn't been easy. Most inserted contract provisions that effectively prevented franchisees to install ethanol pumps. The U.S. only has just over 1,400 ethanol stations out of around 170,000 filling stations. Biodiesel? Good luck. It's easier to fill up with old grease from the deep fat fryer at Carl's Jr. than a regular biodiesel station. But the cracks are beginning to show. Coming federal laws will make it easier for gas stations to carry ethanol and some of the majors are even taking voluntary actions. Today, for instance, ConocoPhillips said it will help with CleanFuel USA to install propane dispensers over the next three years at 76 stations. Conoco will supply the propane and CleanFuel will put in the pumps. How many will get installed? Who knows, but it does signify some effort on Conoco's part. Propane has lower greenhouse gas emissions, wheel-to-well, than gas or diesel and it's comparatively cheap -- it costs about $2.30 a gallon and you get federal tax credits on top of that. There's a lot of it too. It's not as clean as cellulosic ethanol, but it is available now. To date, propane cars are largely only owned by fleets. Thus, some, if not most, of these pumps will be found at places where buses and truck congregate. Still, it could expand and both Ford and General Motors have signaled they will expand their propane programs. CleanFuel estimates that there are around 10 million propane vehicles worldwide. “We can be a fuel for everybody, but we can probably put 1.5 billion gallons [per year] into the market right now without a disruption of supply and demand,� CEO Curtis Donaldson told me earlier this year.