Propane? Price per tank and gal/hr?

Discussion in 'Alternative Fuel Forum' started by djagusch, Oct 4, 2011.

  1. c2weech

    c2weech LawnSite Member
    Posts: 62

    Thanks for all the great information you have been providing
     
  2. thunderthud

    thunderthud LawnSite Member
    Posts: 127

    Yes!

    My tank setup is vertical because of space issues and is 19ft tall. As I recall there was a 500, 1000 and the 2000 gallon tank. My tank was $18,000 delivered. The smaller tanks were vastly cheaper.

    I have two mowers today, so the tank was massive overkill, but next season I will have twenty-two mowers on propane and two F550's on propane.

    In four years when I order new pickups I'm hoping there is a Roush factory kit for the new F150. I'm not doing any of the homebrew conversions. I need the trucks and equipment I have to make money, not just claim it is eco-friendly.
     
  3. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,140

    Can I assume that the price of propane when buying 2000 is significantly cheaper than 500 gals? The local shop has certified kits for most trucks. The back breaker is the tank location.
     
  4. djagusch

    djagusch LawnSite Platinum Member
    from MN
    Posts: 4,225

    I was told by my future propane supplier that if I had a 500 gal tank 1000 gal tank or 2000 gal tank it was the same price per gallon which was locked in for 12 months. Keep in mind in the north propane delivery is very common in rural areas. I call in the winter that my home tank is at 30% and they fit it in a route usually the next day. With trucks delivering most days a trip for 500 gals or 2000 gals doesn't change their costs much as the truck is still moving all the time.
     
  5. djagusch

    djagusch LawnSite Platinum Member
    from MN
    Posts: 4,225

    The tanks are delivered, leased cage and tanks at no charge.

    For the fill station they can offered 500, 1000, and 2000 gallon tanks depending on usuage.
     
  6. thunderthud

    thunderthud LawnSite Member
    Posts: 127

    Nope, just cuts down on the multiple delivery charges. I'm running 22 mowers next season. That's still probably weekly deliveries. Add in my two F550's and I'm looking at every 4 business days.

    I have the same deal, I'm locked into an annual volume minimum as well. I ended up with a decent local supplier who has a fill station 1/2 mile from my shop. They were completely useless for the fill station information, but the price was fantastic and they deliver.
     
  7. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,140

    What is a leased cage? Or does this mean you lease the entire tank pump etc. etc.? What does that cost?
     
  8. djagusch

    djagusch LawnSite Platinum Member
    from MN
    Posts: 4,225

    A metal mesh storage cabinet for the tanks. If I went the tank exchange program route they come by unlock the cage and replace the empty tanks with filled ones. The cage is leased to me at no charge with the 12month tank exchange program. The reson they want the tanks locked up is to protect from theft since they actually own the tanks and not me.

    If I commit to enough propane then they would lease a fill station on a skid to me. I would provide 230 power to it. I was told it would be a low cost lease. I need to figure out how much volume I'm going to commit to then I would get the actually figures. Guessing I'm only going to be 5000 to 6000 gallons if I convert my truck and main mowers. My house is 1000 gallons on top of that also per year which I think will help me with the volume amount.
    Posted via Mobile Device
     
    Last edited: Oct 8, 2011
  9. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,140

    So what is the lowest you can get propane for.....I am paying $2.79 a gallon in the 10 gallon tanks. If I can't get it below $2 I am stopping the conversions with 3 mowers..no trucks.
     
  10. TRL

    TRL LawnSite Member
    from Chicago
    Posts: 13

    We've been paying $1.88-2.08 this year per gallon. Hours of operation per gallon are about the same when comparing to gas. Our gas company provided two cages and tanks at no charge. If you have any questions, let me know.
     

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