Propane Challenge
Propane Challenge is an outreach program designed to get talented researchers and manufacturers like you thinking about new ways to deliver and use propane. The best technology-based ideas we receive can earn research grant funding and a chance to win the PROPANE Exceptional Energy® award recognizing the most innovative and meaningful contributions to the industry.
More Than $81.3 Million in R&D Grants Awarded Since its formation in 1998, PERC has awarded more than $81.3 million for research and development of groundbreaking propane technologies through dozens of partnerships with top companies, universities, and national laboratories. Recently Awarded Grants
Innovation OpportunitiesPropane Challenge aims to generate ideas and solutions focused on a set of opportunities identified by PERC. These breakthrough innovation opportunities hold the most promise to grow the propane industry and improve its offering. While PERC encourages all idea submissions, those that address these opportunities will receive priority consideration.
Develop energy-efficient space cooling systems fueled by propaneTraditional space cooling systems are most frequently powered by electricity, but can be replaced by engine-based, absorption, or other cooling systems fueled by propane. PERC believes there is an opportunity for propane-fueled space cooling systems to offer consumers a new energy-efficient option for air conditioning while creating opportunities to develop a single-source technology for heating and cooling in residential and small commercial spaces. State of Current Technology Gas cooling technologies include absorption chillers, absorption heat pumps, engine chillers, air conditioners, gas engine heat pumps, and desiccant dehumidification systems. Many of these technologies were developed to run on natural gas and could be adapted to run on propane. A few propane-fueled gas cooling systems are currently available (small lithium bromide and ammonia chillers, small absorption cooling/heating and heat pump units, small desiccant dehumidifiers, and commercial-scale rooftop heat pumps) but have not yet been able to gain traction in the U.S. space cooling market. Read the PERC-supported report. Detailed Innovation OpportunityPropane Challenge is seeking ideas that will lead to the development of energy-efficient space cooling systems fueled by propane. A successful idea will accomplish at least one of the following: - Develop innovative approaches to the physical efficiency limitations of absorption cooling.
- Reduce the cost of engine-based systems to compete with electric cooling units.
- Address noise-related issues of engine running.
- Envision a new technological approach to space cooling that uses propane.
- Required Qualities:
- Can cool residential or commercial buildings or small enclosed spaces
- Uses engine-cooled, absorption-cooled, or another innovative system
- Energy Efficiency Ratio (EER) of at least 8 British thermal units (Btu) per hour per watt-hour for room units, or Season Energy Efficiency Rating (SEER) of at least 13 Btu for central unitsi
- Desired Qualities:
- Dehumidification function
- Maintenance intervals similar or longer than those of existing commercial cooling systems
- EER of at least 10 Btu per hour per watt-hour for room units, or SEER of at least 14 Btu per hour per watt-hour for central units
- Roughly a 60% relative humidity maximum at 78° Fahrenheit (recommended by ASHRAE)ii
i U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, “Room Air Conditioners,” http://www.energysavers.gov/your_home/space_heating_cooling/index.cfm/mytopic=12420 (accessed February 21, 2012). Dr. William Ryan, Energy Resources Center, Assessment of Propane Fired Gas Air Conditioning, Heat Pumping and Dehumidification Technologies, Products, Markets and Economics, January 19, 2007, http://www.propanecouncil.org/uploadedFiles/Council/Research_and_Development/Research_Programs/11957_UofI_GasCool_Report_FINAL.pdf. ii ASHRAE, “Top Ten Things Consumers Should Know About Air Conditioning,” http://www.ashrae.org/resources--publications/free-resources/top-ten-things-about-air-conditioning (accessed May 24, 2011). - Market Potential

- Existing Markets

- Potential Breakthrough Markets

Develop a propane-fueled agricultural utility tractor Previous PERC research has found that a propane tractor can produce similar horsepower and torque with lower emission and noise levels, when compared with diesel. With impending Environmental Protection Agency tier IV emission regulations impacting the design, cost, and potentially the performance of new diesel equipment, PERC believes that the opportunity exists to manufacture a propane-fueled utility tractor that utilizes an abundant domestic supply of propane. State of Current TechnologyInternal combustion engines fueled by propane are used as an alternative to diesel in many applications such as forklifts, irrigation engines, trucks, and generators. Propane continues to be a viable, clean-burning fuel for internal combustion engines that can affordably meet EPA tier IV emissions requirements in the United States. While the basic propane engine technology exists, there is a need for a fully-integrated solution that combines a propane-fueled engine and tank with a modern agricultural tractor.
Detailed Innovation OpportunityPropane Challenge is seeking an original equipment manufacturer (OEM) of agricultural tractors with the capability to produce, market, and support a 75-100 engine horsepower propane-fueled tractor. While it is possible that PERC will support the development of a propane-fueled engine with an appropriate OEM, priority may be given to manufacturers that currently have proven propane-fueled engines and can demonstrate the fastest time to market. A successful idea will accomplish the following:
- Identifies a fuel storage solution that can be integrated into the tractor design.
- Develops a tractor built for medium- and heavy-duty applications, making it suitable for the grueling demands of the agriculture industry as well as other applications where a tractor of this size could be used.
- Uses off-the-shelf propane tank configurations, if possible, to reduce development costs and decrease time to market and incremental expense.
- Required Qualities:
- Has similar horsepower and torque to the diesel equivalent (less than 5 percent variance)
- Incorporates a fuel storage system that does not block the operators view or create a blockage or impediment for any major attachment
- Engine must be configured to run on dedicated propane and meet current EPA emissions for use in the entire United States
- Configured to handle typical attachments as used in California fruit and vegetable production, especially mounted attachments used to prune and harvest vineyard crops
- Front-end loader capable
- Engine maintenance and repair procedures that are manageable for trained mechanics at local dealer outlets
- Desired Qualities:
- Target engine size of approximately 4.5-liters displacement
- Includes mechanical front wheel drive (4wd)
- Has an enclosed operator’s cab
- Uses an off-the-shelf propane tank
- Includes liquid propane injection
- Market Potential

- Existing Markets

- Potential Breakthrough Markets

Develop an economically viable small combined heat and power system that incorporates cooling Today’s combined heat and power (CHP) technology works well in commercial settings, improving energy efficiency and increasing reliability. PERC believes there is an opportunity for smaller micro-CHP with cooling to improve consumers’ energy efficiency and reduce reliance on grid power while increasing the use of propane year-round in the residential and commercial market. State of Current Technology Propane micro-CHP systems produce electricity and capture heat from its propane-fueled engine for use in space and water heating in large homes and small commercial settings. Today’s micro-CHP systems do not produce cool air and are used primarily as an efficient, low-cost heat source. Generated electricity can be used as supplemental power and, in some cases, sold back to the grid. A typical micro-CHP system, similar in size to a conventional outdoor air-conditioning condenser, produces a thermal (or heating) output of approximately 12,000 British thermal units (Btu) per hour, and an electrical output of about 1,200 watts. Read about PERC-supported CHP projects. Detailed Innovation OpportunityPropane Challenge is seeking ideas that will lead to the development of an economically viable, small combined heat and power system that incorporates cooling for air conditioning. A successful idea will accomplish at least one of the following: - Reduce the cost of propane-fueled engine-based systems.
- Address the noise-related issues of an engine running.
- Identify use cases that require a balance of heat, cooling, and power that match optimum system balance for maximum efficiency (dollars per Btu).
- Develop a reliable, cost-effective fuel cell-based system.
- Required Qualities:
- System uses an engine or fuel cell
- Overall efficiency: >85% (combined electrical and thermal output)i
- System has ability to produce cool air on demand
- Desired Qualities:
- Noise level: <56 dBA (to meet market specs)ii
- System availability: <97%
i U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, “Distributed/Stationary Fuel Cell Systems,” http://www1.eere.energy.gov/hydrogenandfuelcells/fuelcells/systems.html (accessed March 8, 2011). ii Marathon Engine Systems, “Cogeneration,” http://www.marathonengine.com/cogeneration.html (accessed March 8, 2011). - Market Potential

- Existing Markets

- Potential Breakthrough Markets

Develop a cost-effective conversion system to convert fuel oil furnaces and boilers to propane Fuel oil has a significant share of the residential and commercial heating market. PERC believes that there is an opportunity to create a cost-effective conversion system that converts oil furnaces or boiler systems into propane combustion systems. Retrofitting a traditional oil combustion heating system such as an oil hydronic boiler system or oil furnace could help improve efficiency in heating applications and reduce emissions. State of Current Technology Many types of commercially available propane-fueled furnaces and boilers already are in use. These products provide reliable, environmentally friendly heating for homes, commercial spaces, and agricultural operations. Propane conversion systems are also currently available, but mainly for engine-fueled technologies, such as on-road vehicles and lawnmowers. However, retrofit approaches to residential and commercial heating systems have not been explored, and complete system changes from fuel oil to propane can be prohibitively costly. Read about PERC-supported heating projects. Detailed Innovation OpportunityPropane Challenge is seeking ideas that will lead to the development of a cost-effective conversion system to convert fuel oil furnaces and boilers to propane. A successful idea will accomplish at least one of the following: - Reduce initial cost so of conversion.
- Retrofit that is easy to install in most existing household and commercial building infrastructure, which may require innovative approaches.
- Improve efficiency of propane units to improve the value of switching to propane.
- Required Qualities:
- Converts residential and commercial oil-fueled furnaces and boilers to run on propane
- Minimal interference to existing heating and ventilation system
- Feasible delivery of propane gas to heating unit
- Includes installation method
- Economical (target of two-year payback period for conversion)
- Desired Qualities:
- Compatible with nearly all current oil-fueled furnaces and boilers
- Methods or parts that boost efficiency upon conversion (e.g., part of the conversion system includes process to utilize waste heat)
- Market Potential

- Existing Markets

- Potential Breakthrough Markets

Improve consumer-level dispensing of liquid propaneCurrent regulations require consumers to have their propane tanks fueled by a certified distributor, either on-site or at a refueling station. By allowing consumers to dispense liquid propane and propane autogas safely without having to wait for assistance, the propane industry can provide the same level of convenience consumers have come to expect from liquid fuels. Increasing the ease of refueling at the consumer level will, in turn, help ease and encourage the adoption of propane-fueled products. State of Current Technology Today’s propane refueling processes vary depending on the size and type of cylinder, but often require the consumer to transport the tank to a business with a propane refueling station and certified attendant. At a refueling station, a tank undergoes a visual inspection by the attendant and is then placed on a scale and filled to the maximum allowable fill weight. Some cylinders, such as forklift cylinders, are not required to be filled by weight, and can instead be filled by fixed liquid level gauge that indicates when the tank is filled to capacity. Read the PERC-supported report. Detailed Innovation OpportunityPropane Challenge is seeking ideas that will lead to the development of safe, reliable, and consumer-level dispensing of liquid propane. A successful idea will accomplish at least one of the following: - Explore new approaches for solving differential pressure limitations.
- Develop simple mechanism to indicate "tank full" status to consumer.
- Train consumers on proper dispensing practices.
- Required Qualities:
- Increases overall convenience and operational efficiency
- Reduces filling times
- Reduces fugitive emissions
- Proves a degree of safety in propane dispensing
- Compliant with NHSTA regulations
- Desired Qualities:
- Does not have a need for an attendant to refill tanks
- If regulatory changes are required, includes proposed changes to current regulations
- Market Potential

- Existing Markets

- Potential Breakthrough Markets

Develop a propane-fueled turbine to replace internal combustion engines for stationary applicationsGas turbine engines are durable, proven technologies that provide reliable distributed power generation and can be designed to run on a variety of fuels. PERC believes there is an opportunity for further development of propane-fueled turbine engines that can replace internal combustion engines and offer highly efficient power generation in stationary applications. State of Current TechnologyInternal combustion engines currently are used in stationary applications to generate electricity, to operate compressors and pumps, and to provide power for emergency situations. While small propane microturbines currently are available for use in generating on-site power in residential and small commercial applications, there are no propane-fueled turbines used as a replacement for internal combustion engines in stationary applications at larger scales, and microturbines have not gained market acceptance. Yet the durability and reliability of turbine operation addresses a significant disadvantage to engine-based distributed power generation systems, namely, their maintenance requirements. Read about PERC-supported microturbine projects. Detailed Innovation OpportunityPropane Challenge is seeking ideas that will lead to the development of a propane-fueled turbine to replace internal combustion engines for stationary applications. A successful idea will accomplish at least one of the following: - Modify turbine design to optimize performance using propane.
- Consider turbine size and scale issues relative to propane opportunities.
- Develop systems that optimize the use of propane-fueled turbines in a cost-effective manner.
- Required Qualities:
- Has an optimized size and scale to maximize system efficiency
- Power outputs in the range of 1 to 20 kilowatts
- Proven cost competitiveness with engine-based systems on a life-cycle cost basis
- Desired Qualities:
- Uses 95 percent or more of waste heat
- Market Potential

- Existing Markets

- Potential Breakthrough Markets

Create ventless propane utilization system to expand use of propane in enclosed spacesVentless propane heating systems provide affordable, efficient heating in homes and other enclosed spaces. PERC believes there is an opportunity for ventless propane systems to serve as primary heating sources, offering consumers an environmentally friendlier heating option and increasing the range of potential applications in residential and commercial propane markets. State of Current Technology Ventless propane heaters are most commonly used as heating sources in outdoor spaces. The indoor use of ventless propane heaters in the United States is limited to small (10,000 Btu) heaters due to a variety of factors, including concerns regarding carbon monoxide formation during the combustion process and safety concerns regarding indoor use of propane cylinders of any size. These models also release a significant amount of moisture into the air. Installing necessary venting for new propane equipment creates significant installation time and cost hurdles that can limit the incentive for consumers to switch from electric appliances to propane-fueled systems. Detailed Innovation OpportunityPropane Challenge is seeking ideas that will lead to the development of a ventless propane utilization system to help expand the use of propane in enclosed spaces. A successful idea will accomplish at least one of the following: - Identify exhaust gas treatment (e.g., catalyst or equivalent) to remove carbon monoxide from combustion gases.
- Link to a plug-and-play fuel distribution system, using the connection as fuel input and exhaust output in one system.
- Required Qualities:
- Nearly 100% combustion
- Incorporates exhaust gas treatment to remove carbon monoxide by-product from partially combusted propane
- Includes all other features to ensure safe operation in enclosed (unventilated) spaces
- Desired Qualities:
- Reduces/eliminates moisture by-product
- Tailored to new construction as opposed to existing structures
- Competitive with electric systems from a cost perspective
- Market Potential

- Existing Markets

- Potential Breakthrough Markets

Use propane as a source of thermal energy for heating, cleaning, and disinfecting Propane is used as a source of energy in nearly 900,000 farms in the United States for applications such as grain drying, orchard heating, and irrigation. PERC believes that there is an opportunity for propane-fueled thermal agriculture technologies to provide a safe, efficient alternative to chemicals for heating, cleaning, and disinfecting on the farm and beyond. State of Current Technology Weed and pest control methods that use chemicals have raised concerns about food safety and animal welfare, and are not an option for farms committed to organic growing practices. Demonstrations and testing have proven propane-fueled thermal technologies to be effective, environmentally friendly options for controlling weeds and insects, sanitizing soil, and protecting against frost. Existing propane-fueled technologies include units that produce flames for frost protection in orchards and units that produce hot steam or flames to kill weeds and harmful pests and pathogens in the field, in animal stalls, and in storage. Yet the market acceptance of such approaches remains slow and other opportunities for propane-fueled disinfecting and sterilization, such as exist in the food processing industry, remain untapped. Read about PERC-supported thermal weed control, sanitation, insect control on farms, and frost protection projects. Read the PERC-supported report on insect control in homes and businesses. Detailed Innovation OpportunityPropane Challenge is seeking ideas that will lead to the development of technologies that use propane as a source of thermal energy for heating, cleaning, and disinfecting in order to reduce dependence on chemicals. A successful idea will accomplish at least one of the following: - Reduce the cost of the application in agriculture uses (buildings and soil) as compared to chemical treatment.
- Develop a thermal treatment system for specific uses, such as treatment of insects and pests (e.g., bed bugs).
- Establish a certification process that confirms effective treatment without damage.
- Required Qualities:
- Includes a clear statement of system use (outdoors/indoors; control of pests/weeds/bacteria) fueled by propane
- Produces controllable thermal output capable of effectively heating, cleaning, and/or disinfecting, as required by the envisioned application
- Includes safety guidelines
- Desired Qualities:
- Comparative cost analysis that demonstrates the cost-effectiveness of the envisioned application
- System maneuverability as required by envisioned application
- Market Potential

- Existing Markets

- Potential Breakthrough Markets

Develop an integrated "energy pad" Residential and commercial buildings rely on multiple technologies and energy sources for heating, cooling, and power. PERC believes there is an opportunity to develop an integrated “energy pad” system that provides all of the energy requirements for a residential or commercial building in a single system installed outside the building structure. Relying on propane-fueled appliances, this system would offer consumers increased overall energy efficiency and convenience. State of Current Technology Current heating, cooling, and power generation technologies fueled by propane operate independently in residential and commercial spaces. There are no commercially available propane-fueled systems that allow consumers to rely on one system to meet all energy requirements while taking advantage of possible systems efficiencies. Detailed Innovation OpportunityPropane Challenge is seeking ideas that will lead to the development of an economically viable, combined heat and power system that incorporates cooling, hot water heating, and other energy requirements for a typical residential application. A successful idea will accomplish at least one of the following: - Develop an "energy pad" system concept to maximize system efficiency and minimize costs.
- Develop siting and installation procedures and requirements.
- Explore new approaches for solving differential pressure limitations for liquid fuel dispensing to lawn and recreation equipment.
- Develop a simple mechanism to indicate “tank full” status to consumer.
- Address noise-related issues.
- Identify the use cases that require a balance of heat, cooling, and power that match optimum system balance for maximum efficiency.
- Required Qualities:
- Provides electricity and fuel to an entire home or building using propane
- Includes a complete analysis of integration of the following into building and system operation
• Electrical • Appliances (e.g., cooking, hot water, etc.) • Heating and cooling - Maximizes energy efficiency through the use of waste heat, energy storage, or other approaches
- Desired Qualities:
- Dispenses propane into mobile units (e.g., lawnmowers, grill tank, etc.)
- Has the capacity to direct energy to a prospective “smart grid”
- Market Potential

- Existing Markets

- Potential Breakthrough Markets

What is PERC?
PERC's mission is to promote the safe and efficient use of odorized propane gas through research and development, training, and safety programs.
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