Which Fuel Type Is Best for Your Industrial Operation? 9 Options

Fuel types can make or break a business. Evolving regulations, fluctuating prices and sustainability demands require industrial professionals to consider their options carefully. What type is best for industrial operations?

The market has traditional choices and alternatives to fit various company goals. Here are nine options for manufacturing professionals.

1. Natural Gas

Natural gas is among the most prominent fuels in industrial operations. In 2024, the United States produced over 1 trillion cubic meters, more than double the amount produced 20 years ago. This fuel option is used across industries, from food and beverage to textiles. Glass manufacturers can use it to achieve high temperatures for melting raw materials.

Industry professionals should consider natural gas due to its comparative cleanliness. While this fuel is a finite source, it is cleaner than coal. Experts say it has reduced power emissions to 1980s levels by substituting coal. Natural gas has extensive nationwide infrastructure, so manufacturers benefit from convenient access.

2. Propane

Propane — or liquefied petroleum gas — is versatile and efficient for industrial operations. It’s among the most common fuels worldwide and demonstrates sustainable features. Experts say it has high energy density, burns cleanly and is accessible to the general public. Due to low costs and modern retrofitting capacities, original equipment manufacturers may choose it for high-mileage vehicles.

Manufacturing and industrial professionals use propane because they can store it in liquid form. Therefore, it’s easier to have on hand if natural gas pipelines are unavailable. Propane’s constant energy output makes it attractive to warehouses, whether they’re powering forklifts or fleet vehicles. Manufacturers can use it to provide heat for metalworking, food processing and ceramics.

3. Diesel

Diesel is popular among manufacturers, construction teams and agriculturists due to its reliability and high power. Operators use this fuel to get the most from their equipment, as diesel engines deliver more torque and higher thermal efficiency. Companies can expect efficiency, reliability and power when using this source for excavators or cranes.

Diesel is best for industrial applications requiring power and mobility. Team leaders may use it in bulldozers needing substantial torque or drilling rigs in mines. This fuel source is helpful in data centers and manufacturing plants because they use backup generators. Agricultural workers benefit from diesel through tractors, harvesters and irrigation pumps, as farmers can easily store it.

4. Biodiesel

While diesel is used worldwide, its ecologically safer counterpart is rising. Biodiesel or fatty acid methyl ester (FAME) originates from natural ingredients like soybeans and animal fats. B7 formulas use 93% diesel and 7% FAME, whereas B20 uses 80% diesel and 20% FAME. Companies have moved toward this fuel type due to its environmental benefits, such as reduced dependency on fossil fuels.

Biodiesel limits particulate matter and carbon monoxide production, benefiting employees working near exhaust systems. Its flashpoint is higher than standard diesel’s, so it’s safer for handlers. This fuel type is prominent in diesel industries, such as transportation and agriculture. It relies on feedstock supply chains, so it may be more useful where these resources are plentiful.

5. Hydrotreated Vegetable Oil

Hydrotreated vegetable oil (HVO) is another diesel subtype. It’s 100% renewable, and workers can substitute regular diesel without special modifications or replacing parts. While density is lower, it can be mixed with conventional fuel to support proper function. Hydrotreating distinguishes this product by removing unwanted impurities like sulfur and oxygen.

HVO is best for manufacturing professionals who require diesel with fewer emissions. Sustainable-minded companies may use it in generators, boilers and processing equipment. Industrial leaders should acknowledge pitfalls like lower energy density and reduced engine output. However, it may benefit operations in rural environments with minimal grid access.

6. Electricity

Electricity has been used in manufacturing for decades, evolving into a preferred energy source. This fuel type centralizes energy-related emissions for manufacturers and improves city air quality. It’s cleaner than fossil fuels, so it’s become integral to sustainability policies. To reduce oil and gas consumption, industrial professionals can pair it with renewable sources like solar and hydropower.

Electricity helps manufacturers with process heating, which is essential for pharmaceutical and food and beverage companies. Material handlers can use it to power conveyors and robots on warehouse floors. The transportation industry has benefited from electricity, which powers the newest generations of vehicles. Electric cars have changed the automotive sector by reducing carbon footprints and eliminating tailpipe emissions.

7. Hydrogen

Hydrogen is essential to human life and manufacturing processes. While this chemical element is newer to industrial processes, company leaders are discovering why it’s beneficial. Hydrogen has become a viable fuel source because it has no CO2 emissions. Instead, water vapor is the only by-product, making it more environmentally friendly.

Hydrogen is prevalent in manufacturing applications where high temperatures are needed. For instance, steel and cement production need combustion because the process requires more than electricity. Chemical manufacturers use hydrogen as a feedstock for ammonia and methanol, and the transportation industry is transitioning to fuel cell electric vehicles.

8. Biomass

Manufacturers can convert biomass, like wood chips, into biofuels. This fuel source is excellent for companies wanting to reduce their carbon footprints with cleaner alternatives. While it has some emissions, biomass offsets them by absorbing CO2 while the feedstock grows. Therefore, it’s more environmentally friendly than fossil fuels and viable for industrial applications.

Due to local sourcing, biomass helps manufacturers shorten their supply chain. Industrial professionals can procure agricultural by-products, food waste and animal manure as fuel. Given the availability of wood waste, this energy source is helpful for paper and pulp mills. Companies could use biomass as fuel for the boilers and process heat.

9. Ethanol

Ethanol is a bio-based alcohol fuel typically produced from corn and sugarcane. It derives from biomass feedstocks and is helpful for industrial applications. While ethanol is a fuel, it’s more sustainable than standard oil and gas. Experts say it burns cleaner than fossil fuels and has reduced transportation emissions, considering its usage in industrial fleets.

Ethanol is widely used in the transportation industry and beyond. Perfume and cleaner producers use this fuel as a solvent because it supports the spraying function. It also benefits heat and power generation, specifically in industrial boilers. Ethanol has a 109 octane rating, giving boilers cleaner combustion and reduced equipment stress.

Leverage the Best Fuels for Manufacturing Applications

Selecting the right fuel is essential to business resilience, sustainability and profitability. From diesel to hydrogen, each source offers unique advantages and trade-offs. The best choice depends on process requirements, the regulatory environment and sustainability goals. Some manufacturers have adopted hybrid approaches by blending traditional and alternative fuels.