Fuel Options for Off-Grid Industrial Facilities
Four common options exist for an industrial facility with no pipeline connection: diesel, propane, trucked LNG and trucked CNG. Consumption, distance from supply and how long the site will need the fuel settle almost every case.
Four off-grid fuel choices
- Diesel: simplest to start and usually the most expensive per unit of energy, so it suits low or intermittent load.
- Propane: cheaper per unit and simple to store, suiting moderate load.
- LNG: usually wins at high continuous consumption, because natural gas has historically been the cheaper molecule per million Btu and the equipment cost spreads across more energy.
- CNG: suits lower volumes and shorter distances.
What determines the fit
The load profile, distance from supply, and expected duration matter more than a generic fuel ranking. A short-term or intermittent site may value simple storage and fast startup. A high continuous load can benefit from LNG because natural gas has historically been the cheaper molecule per million Btu and the equipment cost spreads across more energy, while a lower-volume site closer to supply may fit CNG or propane.
Frequently asked questions
What is the cheapest fuel for an off grid site?
Usually propane at moderate consumption and LNG at high consumption, with diesel the most expensive per unit of energy but the simplest to start. Distance from supply can change that.
Can we switch fuels later?
Yes, though the equipment is mostly fuel specific. Sites expecting consumption to grow often start on diesel or propane and move to LNG once the load justifies it.
How quickly can supply start?
Diesel and propane can start quickly. LNG requires storage and regasification equipment on site first.