LP Gas • March 2022 • INDUSTRY UPDATE

Cummins Inc. plans to expand its powertrain platforms to leverage a range of lower carbon fuels, including propane. The global power company, based in Columbus, Indiana, says the fuel-agnostic platforms will use engine blocks and core components that share common architecture but are optimized for different low-carbon fuels.

“We need to take action now,” says Srikanth Padmanabhan, president of Cummins’ engine segment. “Having a variety of lower carbon options is particularly important considering the variation in duty cycles and operating environments across the many markets we serve. There is no single solution or ‘magic bullet’ that will work for all application types or all end users.”

The fuel-agnostic platforms are designed and built upon the knowledge gained from the millions of its diesel and natural gas engines manufactured and currently in use, says Cummins, which aims to reach net-zero emissions by 2050, driven by changes to its products and the energy sources that power them.

Similar components will largely be found below the head gasket of each engine, while different components for varying fuel types will comprise the engine above the head gasket. Each engine version will operate using a different, single fuel.

“This is a new way of designing and developing lower emission internal combustion powertrains that meet the unique needs of the transportation industry while leveraging the benefits of a common product architecture and footprint where possible,” says Jonathon White, vice president of engineering for the company’s engine segment. “This unique technology approach will allow end users to more seamlessly pick the right powertrain for their application with the lowest CO2 impact.”

Parts commonality will offer increased benefits for both truck OEMs and end users, Cummins says, including similar engine footprints, diagnoses and service intervals. It will be easier for OEMs to integrate a variety of fuel types across the same truck chassis with minimal costs to train technicians and retool service locations, resulting in a lower total cost of ownership for the end user, the company adds.

Cummins’ new design approach will be applied across the company’s B, L and X-Series engine portfolios, which will be available for diesel, natural gas and hydrogen.

It has already announced natural gas- and hydrogen-powered 15-liter engines for the heavy-duty and long-haul markets, and will soon offer gasoline, propane and hydrogen internal combustion engines designed for medium-duty, vocational and transit applications, Padmanabhan explains.

Specifically, Cummins plans to add gasoline, propane and hydrogen to its B6.7 portfolio, complementing its diesel and natural gas products. The B6.7 propane engine, on track for a 2024 launch, will be used for medium-duty truck, vocational, school bus, RV and terminal tractors, according to the company.

“In addition to natural gas, we’re designing engines that run on propane while featuring a high degree of parts commonality with our natural gas- and diesel-fueled engines,” White says in a company-produced video.

Tucker Perkins, president and CEO of the Propane Education & Research Council (PERC), who has worked closely with Cummins, lauded the company for its fuel-agnostic engine strategy that recognizes propane’s role in protecting the environment.

“What I really liked about it is here’s a historically diesel company saying we have to change,” Perkins says.

PERC contracted with Cummins last year on the development and commercialization of the 6.7-liter engine in 2024. The council approved $12 million for the project in December 2020 and says it has invested $18 million overall in the engine, which had been given a successful test run in a 2018 Peterbilt 337 operated by AmeriGas for propane delivery.

The propane engine will provide fleet owners with diesel-like performance and durability, uptime and low total cost of ownership, with expected power ratings between 280 to 360 hp and 600 to 860 lb.-ft. of torque, Cummins says. The company is designing the engine to meet or exceed Environmental Protection Agency and California Air Resources Board regulations in 2024 and beyond.

“That makes this capable to be not just a workhorse but the cleanest workhorse that exists, and that’s the kind of stuff that gets me out of bed in the morning,” says Sam Geckler, technical project leader at Cummins.

Geckler says the propane engine is going through the company’s product development process, which includes design, prototype construction, testing and validation: “A massive amount of simulation to stress the product and evaluate it in a virtual world before we get into the physical world. We’re coming up on the first round of our big prototype builds this year. We’re excited for that.”

Geckler calls propane a great addition to Cummins’ mid-range lineup, owing to its availability, lower carbon features and positive fuel properties in terms of energy density and cost structure. It also provides immediate benefits, with the fuel and infrastructure already in place.

“These are technologies that people can implement now, and that’s why we’ve looked at the fuel types and platforms we have,” adds Chris Vanasdalan, senior marketing communications specialist for Cummins’ on-highway segment. “We feel it’s critical for fleets to take action now versus waiting for a silver bullet solution, which we all know doesn’t really exist.”

PERC planned to educate attendees of March’s NTEA Work Truck Show in Indianapolis about the Cummins engine, as well as Roush CleanTech’s 7.3-liter propane engine and Power Solutions International’s 8.8-liter propane engine.

Geckler says PERC has been a good, patient partner on a time-consuming project that takes a lot of hard work by many people.

ACQUISITIONS & SALES

Blossman Gas purchased Coastal Gas Services in Outer Banks, North Carolina; Dolphin Gas in Miami; and Ford’s Propane in North Myrtle Beach and Loris, South Carolina, and Bolivia, North Carolina.

Blossman Gas says it gains over 19,000 customers and will retain employees from each of the acquired companies.

Dolphin Gas will be rolled into the current Blossman Gas location in Margate, Florida.

JC Propane serves about 7,000 customers from four locations in western Colorado. The company primarily serves residential customers but also has commercial, agriculture and dispenser accounts.

DCC now serves nearly 18,000 customers in Colorado. DCC also adds JC Propane’s entire fleet of vehicles and 24 employees.

JC Propane is DCC’s fourth Colorado-based acquisition in the past two years, following Affordable Propane, Blue Flame Propane and Enviro Gas.

Raritan, New Jersey-based Skylands Energy Service acquired the energy supply business of M.J. Neill. Terms were not disclosed.

Located in nearby Bernardsville, M.J. Neill has been a family-owned and -operated business for more than 100 years.

The company has evolved from coal to heating oil to offering service and propane for cylinder exchange and diesel fuel for commercial vehicles.

Skylands Energy Service is a HVAC company, also family-owned and -operated. The company delivers home heating oil throughout central New Jersey.

Cole Oil & Propane of Lomira, Wisconsin, purchased all assets of Strobel Propane Gas, located in Kewaskum, Wisconsin.

Family-owned Strobel Propane Gas has serviced Wisconsin’s Washington County and the surrounding area for more than 50 years.

Strobel Propane Gas owners Myron and Becky Strobel sold the company upon their retirement. Two Strobel Propane Gas employees join Cole Oil & Propane.

Millers Energy sold its 21 company-operated petroleum marketing and convenience retail stores, two company-owned dealer-operated stores and more than 70 wholesale dealer accounts.

Global Partners acquired Millers’ stores and wholesale dealer accounts located in Virginia and North Carolina. Sunshine Gasoline Distributors acquired the wholesale dealer accounts in Florida.

The parent company of Millers Energy, Miller Oil Co., will continue to own and operate a heating oil distribution and HVAC service business with operations in Virginia.

Global sources, stores, transports and delivers propane throughout the Northeast.

River Valley Cooperative, headquartered in Davenport, Iowa, agreed to acquire Eastern Iowa Propane & Petro of Clinton, Iowa. The companies expect to complete the acquisition by April 15.

Eastern Iowa Propane & Petro operates two retail cardtrol locations in Clinton and Maysville, Iowa, and delivers propane and refined fuel products to 3,000 customers throughout eastern Iowa and western Illinois.

Eastern Iowa Propane & Petro employs 25 full-time employees who are expected to join River Valley Cooperative.

River Valley Cooperative is an agriculture cooperative. It has 36 locations with more than 300 full-time employees.

1 2 3 Blossman Gas (Ocean Springs, Mississippi) acquires Coastal Gas Services (Outer Banks, North Carolina), Dolphin Gas (Miami) and Ford’s Propane (North Myrtle Beach and Loris, South Carolina; Bolivia, North Carolina) – all in 2021

4 DCC Propane (Lisle, Illinois) buys JC Propane (Delta, Colorado) in another 2021 deal

5 Skylands Energy Service (Raritan, New Jersey) purchases M.J. Neill (Bernardsville, New Jersey)

6 Cole Oil & Propane (Lomira, Wisconsin) acquires Strobel Propane Gas (Kewaskum, Wisconsin)

7 Global Partners (Waltham, Massachusetts) and Sunshine Gasoline Distributors (Doral, Florida) buy Millers Energy stores and wholesale dealer accounts

8 River Valley Cooperative (Davenport, Iowa) to acquire Eastern Iowa Propane & Petro (Clinton, Iowa)

The acquisitions listed here were made public and/or reported to LP Gas magazine. To report your company’s acquisition, email: brichesson@northcoastmedia.net.

IHS Markit’s inventory outlook came ahead of a blast of cold temperatures, dropping inventories and raising prices. Peak demand extended well into February. Though the U.S. propane inventory situation has improved, market tightness will remain this year and begin to improve in 2023, the firm says.

EDP adds to corporate development team

Energy Distribution Partners (EDP) hired Daniel Dixon as vice president of corporate development.

To date, Dixon has participated in more than 60 successful transactions. Dixon joined Propane Resources in 1997 and spent more than 15 years there as a consultant for valuations, appraisals and business reviews, as well as mergers and acquisitions. He later joined AmeriGas Propane where he spent nearly nine years serving as group director of business development.

He is past chairman of the Alabama Propane Gas Association and more recently past chairman of the Propane Education & Research Council. He currently serves on the National Propane Gas Association’s board of directors.

Dixon graduated from the University of Mississippi with a Bachelor of Science degree in accountancy, and earned his MBA from the University of Alabama at Birmingham.

Paraco names director of market development

Paraco Gas appointed longtime employee Andrew Mirchin to director of market development, expanding his sales responsibilities to include leading mergers and acquisitions.

Mirchin also serves as Paraco’s national accounts manager, responsible for acquiring high-profile customers and building on those relationships, the company says. He began at Paraco in 1984, working in outside sales and progressing on to sales manager and a variety of other positions over the years.

Cargas Energy appoints director of energy support

Cargas promoted Pamela Morrissey, formerly customer support manager for the company’s business unit, to director of energy support.

In her new position, Morrissey leads Cargas’ customer and technical support teams in addressing questions and concerns about the company’s software.

Morrissey joined Cargas in 2020 and has led the effort to implement tools focused on process improvement and automation, the company says. She is certified in project management, Sigma Six Green and Sigma Six Lean through Villanova University, and holds a MBA from Duquesne University.