GM’s Hydrogen Project Pause Highlights Propane’s Fleet Readiness

33,000 Michigan Propane Vehicles Prove Their Popularity

In May, General Motors paused its $55 million hydrogen fuel cell project in Detroit—a partnership with Piston Automotive set to transform part of the old State Fairgrounds into a hydrogen hub. The 292,550-square-foot facility was intended to support hydrogen-powered commercial vehicles. However, construction and development have been halted, and there is currently no restart date.

Alternative fuels, such as solar, wind, and hydrogen, are progressing but remain in development stages and are challenging to scale. While the potential is real, the infrastructure needed to support these energy sources is not available.

In contrast, Michigan companies have put more than 33,000 propane vehicles on the road. Propane offers a proven, cost-effective alternative that fleets can adopt right now. According to the U.S. Department of Energy’s Alternative Fuels Data Center (AFDC), propane is an abundant, low-cost fuel that delivers significant emissions reductions.

Propane Vehicles: A Practical, Low-Cost Alternative

Fleet managers across Michigan are turning to propane-fueled trucks for several reasons:

Lower upfront and operational costs

Propane engines cost significantly less than hydrogen fuel cell electric vehicles (FCEVs). Fueling infrastructure is also more affordable. A propane fueling station can cost as little as $65,000, compared to hydrogen stations, which start at $2 million.

Lower emissions

Propane autogas can reduce greenhouse gas emissions by up to 15%. Renewable propane, particularly camelina-based, can lower emissions by up to 60% compared to petroleum fuels, as reported by Propane.com.

No downtime

Medium-duty propane trucks refuel as quickly as gas or diesel vehicles, offering no delays or charging time required. According to the AFDC station locator, propane refueling infrastructure is widely available across Michigan.

Made in America

More than 90% of U.S. propane is produced domestically, enhancing energy security and reducing reliance on imported fuels or rare-earth minerals.

Alternative fuels, such as solar, wind, and hydrogen, are progressing but remain in development stages and are challenging to scale. While the potential is real, the infrastructure needed to support these energy sources is not available.

A Smart Bridge to a Zero-Emissions Future

This isn’t about propane vs. hydrogen or electric. It’s about what technologies are deployable right now. Hydrogen may eventually serve long-haul and industrial sectors, but it’s not ready for medium-duty fleet use.

Propane, on the other hand, is already delivering results for Michigan’s schools, utilities, municipalities, and delivery fleets. It provides a realistic and scalable solution for reducing emissions and saving on fuel costs, without the need to wait for costly infrastructure to catch up.

Learn More

To explore how propane can work for your fleet, visit MiAutogas.com or check out MiCleanPropane.com for comparisons, case studies, and vehicle conversion insights.

Fuel Type	Light Duty	School Buses	Paratransit	Single Unit Short-Haul Truck	Single Unit Long-Haul Truck
Propane	$60,000	$140,000	$48,000	$104,000	$89,000
Electric	$93,000	$410,000	$93,000	$250,000	$185,000
Diesel	$63,000	$138,000	$53,000	$90,000	$75,000
Gasoline	$52,000	N/A	$42,000	$90,000	$75,000

	Propane	Gasoline	Diesel	Electric
Chemical Structure	C3H8 (majority) and C4H10 (minority)	C4 to C12 and Ethanol ≤ to 10%	C8 to C25	N/A
Fuel Material (feedstocks)	Fats and oils from sources such as soybeans, waste cooking oil, animal fats, and rapeseed	Crude Oil	Crude Oil	Natural gas, coal, nuclear, wind, hydro, solar, and small percentages of geothermal and biomass
Gasoline or Diesel Gallon Equivalent (GGE or DGE)	1 gal = 0.74 GGE 1 gal = 0.66 DGE	1 gal = 1.00 GGE 1 gal = 0.88 DGE	1 gal = 1.12 GGE 1 gal = 1.00 DGE	1 kWh = 0.030 GGE 1 kWh = 0.027 DGE
Energy Comparison (GGE = Gasoline Gallon Equivalent)	gallon of propane has 73% of the energy in 1 GGE due to the lower energy density of propane.	1 gallon of gasoline has 97%–100% of the energy in 1 GGE. Standard fuel is 90% gasoline, 10% ethanol.	1 gallon of diesel has 113% of the energy in 1 GGE due to the higher energy density of diesel fuel.	A typical battery that is the same size as a gallon of gas (0.134 ft3), when used for transportation, can store 15.3% of the energy in 1 GGE. [6][7]
Energy Content (lower heating value)	84,250 Btu/gal (c)	112,114– 116,090 Btu/gal (c)	128,488 Btu/gal (c)	3,414 Btu/kWh
Energy Content (higher heating value)	91,420 Btu/gal (c)	120,388– 124,340 Btu/gal (c)	138,490 Btu/gal (c)	3,414 Btu/kWh
Physical State	Pressurized liquid (heavier than air as a gas)	Liquid	Liquid	Electricity
Cetane Number	N/A	N/A	40–55 (d)	N/A
Pump Octane Number	105 (g)	84–93 (f)	N/A	N/A
Flash Point	-100° to -150°F (j)	45°F (j)	165°F (j)	N/A
Autoignition Temperature	850° to 950°F (j)	495°F (j)	~600°F (j)	N/A
Maintenance Issues			Lubricity is improved over that of conventional low sulfur diesel fuel. For more maintenance information see, the Biodiesel Handling and Use Guidelines—Fifth Edition. (d)
Energy Security Impacts	Approximately half of U.S. LPG is derived from oil, but no oil is imported specifically for LPG production.	Manufactured using oil. Transportation accounts for approximately 30% of total U.S. energy needs and 70% of petroleum consumption. (l)	Manufactured using oil. Transportation accounts for approximately 30% of total U.S. energy needs and 70% of petroleum consumption. (l)	Electricity is produced domestically from a wide range of sources, including through coal-fired power plants and renewable sources, making it a versatile fuel.

Fuel Type	School Buses
Propane	$108,000
Electric	$300,000
Diesel	$100,000
Diesel HEV	$160,000
CNG	$130,000
Gasoline

Chassis	7.3L Version	GVWR	0.05 NOx
E-350	Premium	10,050	N/A
E-350	Economy	10,050	N/A
Economy	E-450	14,000	N/A
Premium	E-450	14,200	Yes
E-450	Premium	14,500	Yes

GM’s Hydrogen Project Pause Highlights Propane’s Fleet Readiness

33,000 Michigan Propane Vehicles Prove Their Popularity

Propane Vehicles: A Practical, Low-Cost Alternative

Lower upfront and operational costs

Lower emissions

No downtime

Made in America

A Smart Bridge to a Zero-Emissions Future

Learn More

School buses

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