Suburban Propane Partners LP and Iwatani Corp. of America will collaborate to advance the adoption of low-carbon alternative energy solutions across multiple applications in the propane market, including propane blended with renewable dimethyl ether (Propane+rDME). The companies announced an agreement May 23, also highlighting their collaboration on advancing investments in hydrogen infrastructure and transportation services in the United States.
Suburban Propane and Iwatani plan to work together to test and evaluate material compatibility, equipment performance, and emissions profiles of residential and commercial appliances, forklifts and on-road vehicles at varying blend levels of Propane+rDME.
The partners will also explore investment and development opportunities to expand the distribution network for hydrogen in the United States. Iwatani’s parent company is Japan’s only fully integrated supplier of hydrogen with the largest share of hydrogen production, distribution and hydrogen refueling stations in Japan, according to the announcement.
Stivala
“We are extremely proud to partner with Iwatani to advance our mutual interests in providing solutions to help decarbonize many sectors of the economy. The collaboration of Iwatani’s market leadership in both the propane and hydrogen markets in Japan, partnered with our leadership in the U.S. propane industry and our collective commitment to innovation, we are excited to help accelerate the transition to cleaner energy alternatives,” said Michael Stivala, president and CEO of Whippany-based Suburban Propane.
“With our initial launch of Propane+rDME in the Southern California market in April 2022, we are leading the way to decarbonizing the propane industry, and this collaboration will help drive even more aggressive carbon reduction in multiple applications,” he said. “In recognition of the growing role that hydrogen will play in a sustainable energy future, we continue to identify opportunities to diversify our business and leverage our significant energy experience to support hydrogen investments in the United States.”
Suburban Propane purchased a 25% equity stake in Independence Hydrogen Inc. in March 2022 and at the same time created Suburban Renewables, a new subsidiary and part of its long-term strategic goal of building out a renewable energy platform.
