The average U.S. commercial building measures 16,000 square feet. Given the vast size of industrial and manufacturing facilities, selecting the right energy solution is a crucial choice that can impact your energy costs and overall profitability indefinitely.

But don’t worry – the experts at UGI Energy Services (UGIES) are here to help!

When choosing a fuel for your facility/building(s), consider the cost and energy efficiency of your options – natural gas, oil, propane, or electricity. Below we discuss these options and explore the pros and cons of each.

Natural Gas

For many economic and environmental reasons, natural gas is typically the preferred option for both fueling and heating industrial and manufacturing organizations.

Pros:

• Because gas is cost-effective and cost-stable, you can lower operation costs.
• There’s rarely an interruption in service during outages, storms, and other complications.
• It’s the cleanest fossil fuel, producing less pollution and fewer greenhouse gases than other options like coal, oil, and wood. This can help support your facility’s sustainability efforts.
• It’s domestically abundant–the U.S. is the world’s largest natural gas producer. This reduces reliance on foreign supplies and provides cost stability/affordability.
• It allows for easy temperature control, which is especially important for busy manufacturing plants and other industrial facilities.
• Natural gas appliances and equipment have a longer lifespan than electric models.
• It can be used to bake, dry, melt, or glaze materials and is often used heavily in the production of many food products and building materials, such as brick, steel, cement, paper, and tile.
• It can be used for various industrial applications, including infrared heating units, direct contact water heaters, industrial co-firing, and combined heat and power.
• It’s an excellent option for waste treatment and the incineration process.

Cons:

• Like all energy sources, natural gas costs can fluctuate based on supply and demand, geopolitical tensions, and weather events. Unless, of course, you choose our fixed-price option!
• If your facility doesn’t have existing natural gas infrastructure, you need to consider the cost of installing pipelines and related equipment.

Propane & Liquid Fuel Oil

Propane and liquid fuel oil each have unique advantages when used as heating sources for industrial and manufacturing facilities.

Pros:

• Propane and oil both burn cleaner than coal.
• Both have a high energy output, providing efficient heating for industrial processes that require consistent and high energy levels.
• Propane is versatile. It can be used for heating and powering equipment, generators, and even certain industrial processes, making it a good all-around energy source for manufacturing facilities.
• Liquid fuel oil is transportable by truck, ship, or rail, making it widely available, even in remote areas.
• UGIES strategically purchases propane to provide competitive pricing for wholesale customers during summer and winter.

Cons:

• Historically, oil has been the most expensive heating option. Propane costs often spike unexpectedly and disproportionately compared to normal supply-and-demand fluctuations.
• Oil and propane are stored in on-site tanks, which take up considerable space, especially for large industrial and manufacturing facilities requiring a lot of fuel.
• You must stay on top of oil and propane deliveries to avoid running out.

Electricity

Using electricity as an energy source comes with various pros and cons.

Pros:

• It’s the only energy source available to virtually every American community. No additional infrastructure is needed, as most facilities already have access to electrical grids.
• Electric-powered heat pumps provide both forced-air heating and central air conditioning in one system.
• You can control air temperature without ductwork. Ductless mini-splits offer high-efficiency heating and cooling without the construction required to retrofit ductwork into your facility.
• Although natural gas furnaces and boilers typically achieve the highest energy efficiency, new models of electric heat pumps also achieve impressive efficiency ratings.

Cons:

• Electricity prices can be high and fluctuate throughout the year. To protect your industrial and manufacturing facilities from volatility, lock in your price for the year by shopping for your energy supplier.
• Your facility is vulnerable to outages, grid failures, or instability, which can affect your operations.
• Large industrial facilities with significant energy needs may strain infrastructure and require additional backup systems.
• Electricity is less efficient for heating, especially in large areas.

UGIES Can Help

Regardless of which energy product you choose (or if you need help choosing in the first place), UGIES is here to help you! We provide one-on-one assistance, so you get the perfect energy plan specifically tailored to your industrial or manufacturing facility.

Ready to get started? Schedule a 7-minute consultation today!

Interested in discovering energy-efficient tips? Download our Industrial and Manufacturing Facilities Energy Guide!