Tiny company has big hopes for more propane-fueled cars

Aug 25, 2014

Filling up with liquid natural gas, aka, propane, aka, autogas
Filling up with liquid natural gas, aka, propane, aka, autogas
Credit David Villa

Propane production in the U.S. is booming - and so is business for a small Michigan company that retrofits vehicles to run on the fuel.

Albert Venezio is Chairman of Icom North America.  Icom N.A. has 25 employees and is based in New Hudson, Michigan.

Albert Venezio, the company's North American Chairman, says propane, otherwise known as autogas, is cheaper and cleaner than diesel or gasoline, and it's ideal for fleets, delivery vans, and school buses. 

One big customer is Metro Cars at Detroit Metro Airport.  The company has converted all its vehicles to run on the Icom system.  The system allows cars to switch between propane or gasoline as needed.

"We can reduce their  fuel costs at least a dollar a gallon, sometimes as much as $2 a gallon, and we reduce emissions probably in the 30-50% ratio, and they use a domestic fuel," says Venezio.

Propane is found wherever natural gas is found.  The natural gas fracking boom has caused a plentiful supply of propane.

Venezio says the U.S. may have enough propane deposits to fuel 5 million vehicles annually.   Right now, about 200,000 vehicles in the U.S. can run on propane. 

The numbers of propane vehicles are much higher in Europe, where taxes make diesel and gasoline fuels very expensive.

Vehicles running on propane get about 10% lower fuel economy - but the fuel produces about a third  lower CO2 emissions - and zero particulate matter. 

"Think about the kids getting out of the (school) bus and having to breathe that black smoke," says Venezio.  "Now when they're on propane, there's no black smoke, there's zero."

Right now, Icom can convert about 5,000 vehicles a year to propane, but Venezio says business is growing so fast that number could rise to 100,000 in five years.