West Coast renewable fuel retailer says the launch of 100% drop-in renewable diesel has spiked sales on a per-outlet basis — 5X jump in renewable content, and 3X jump in gallons sold.
In California, Propel Fuels is reporting a 15X jump in per-outlet sales of renewable fuel for diesel engines, based on a 3X increase in gallons sold of its new Diesel HPR fuel and 5X increase in renewable content for Diesel HPR (100% renewable content, vs the 20 percent renewable content in B20 biodiesel, which Propel formerly sold).
With the news, Propel is expanding distribution to Southern California, adding 13 new locations in Los Angeles/Orange County (Fullerton, Harbor City, La Mirada, Lakewood, Norwalk, Torrance and Wilmington), San Diego (Chula Vista and Kearny Mesa), and the Inland Empire (Arcadia, Claremont, Hemet and Ontario). Propel debuted Diesel HPR at 18 locations in Northern California in March.
Diesel HPR is a low-carbon, renewable diesel fuel that meets petroleum diesel specifications and can be used in any diesel engine. Utilizing Neste’s (neste.us) NEXBTL renewable diesel, Diesel HPR is designated as ASTM D-975, the standard for all ultra-low sulfur diesel fuel in the U.S., and is recognized as “CARB diesel” by the California Air Resources Board even though it contains no petroleum.
What’s the secret?
For one, everyday low prices. The US Energy Information Administration is reporting an average retail diesel price of $2.96 in the state of California, for the week of August 10. The average retail price for Propel Fuels Diesel HPR, for 12 of its new locations in Southern California is $2.55 per gallon (Propel’s Torrance location is reporting a $3.89 per gallon price, a real outlier).
By the way, Propel’s 100-octane E85 is averaging $3.07 per gallon in Southern California, compared to $3.56 for 87-octane regular and $3.81 for 91-octane premium — a discount of 14 percent to regular and 19 percent to premium, not a compelling discount given the fuel economy differential.
(Note, for the discounts reported above, we’re comparing local (Southern California) Propel prices to a statewide average, so it’s not a precise apples-to-apples comparison.)
The other secret
Propel looks cool, and has good locations they’ve “re-thought the American fueling station”, as Fleetowner.com put it, offering customers a chance to offset their carbon, as well as re-fueling. In short, they’ve gone some lengths to change the retail mindset.
The secret in the Fuel
It’s not a top-secret fact, but it’s not widely known that Neste is supplying its NEXBTL fuel to Propel. Interested to learn more about that fuel, and the technology behind it? Our 8-Slide Guide to Neste is here.
Renewable diesel’s low-carbon fuel performance
According to the U.S. Department of Energy’s Alternative Fuels Data Center, renewable diesel’s high combustion quality results in similar or better vehicle performance compared to conventional diesel, while California Air Resources Board studies show that renewable diesel can reach up to 70 percent greenhouse gas reduction compared to petroleum diesel, and reduces nitrogen oxides (NOx) and particulates (PM 2.5) versus petroleum-based diesel.
Commercial and bulk fueling options
In addition to new retail locations, Propel has launched Diesel HPR commercial and bulk availability for business and government fleets statewide. Delivered in bulk to businesses and agencies, Propel’s HPR is bundled with the company’s CleanDrive emissions accounting software, allowing fleets to easily quantify and report GHG reductions and air quality benefits.
Where to find it, pricing, and customer testimonials
A complete list of locations is also available here. Directions and real-time pricing can be found on Propel’s mobile app available in the Android and Apple app stores. Customer testimonials are available here.
Reaction from stakeholders
“Drivers across Southern California can now experience the power, performance and value of Diesel HPR, while making a positive impact on the air quality of the region,” said Rob Elam, CEO of Propel. “Any diesel vehicle can fill with Diesel HPR since it meets the ASTM D-975 quality standard for petroleum diesel.”
“It’s good to see this high quality, low-carbon diesel coming to corner gas stations across Southern California,” said Mary D. Nichols, Chair of the California Air Resources Board. “This renewable diesel will now be conveniently located for all consumers, and joins a growing suite of new, cleaner transportation fuels in California thanks to our Low Carbon Fuel Standard and forward thinking companies like Propel.”
“We congratulate Propel Fuels on their initiative to introduce Diesel HPR to consumers in California and are excited to be their supplier of choice with our NEXBTL renewable diesel,” said Kaisa Hietala, Neste’s Executive Vice President of Renewable Products Business Area. “NEXBTL renewable diesel reduces emissions as well as enhances engine performance leading to lower maintenance and service costs.”