Alternative fuels in Alberta

While electricity and natural gas are common sources of energy in Alberta, many households and small businesses in Alberta still use alternative fuels, particularly in rural areas. For Fall 2022/Winter 2023, the Alberta government announced a natural gas rebate, given that a household meets the eligibility requirements. However, non-natural gas rebates are also available for propane, heating oil and kerosene if the site meets the specified eligibility requirements for whichever specific fuel.  

Read on to learn more about alternative fuel types and their availabilities. 

Propane 

Also known as liquified petroleum gas, propane is an alternative fuel that is the result of natural gas processing or crude oil refining. Common applications for propane include cooking (barbecues, gas burners, etc.), space heating, water heating and crop drying. Additionally, it can be used for transportation such as buses and other high-mileage vehicles. 

Typically, propane is stored at high pressure inside tanks – when the pressure is released, it vaporizes and turns into gas used for combustion which allows for the applications mentioned above. 

Canada produces around 11 million cubic metres of propane per year, with approximately 50% of this figure being exported. According to NRCAN, around 1% of Canadian households heat their homes with propane, with the majority of these homes being in Ontario. 

Currently, as of mid-to-late 2022, there are supply-chain issues in regards to propane according to CTV news article. As such, there has been a spike in the cost of propane to 86 cents, versus the price last year which was 67 cents. 

Heating Oil 

Also known as furnace oil, home heating oil is a by-product of crude oil made from the distillation of petroleum. As the name implies, heating oil is typically used for heating applications. There are two types of heating oil – kerosene and gas oil. Gas oil is used for commercial and agricultural purposes, while kerosene is more so used in homes. 

Much like propane, kerosene and gas oils are combustible, which allows for heating. 

According to the Canada Energy Regulator, heating oil is used more frequently in Atlantic provinces, like Prince Edward Island and Nova Scotia. Overall, across Canada, fuel oil makes up just 4% of residential heating energy, with very little use in non-Atlantic provinces. 

Like propane, furnace oils are also seeing a sharp increase in price due to low global inventories, according to a CTV News article. 

What are alternative fuels used for?

The definition of alternative fuel covers a broad spectrum. For this answer, we’re considering “alternative” as a fuel option other than electricity and natural gas. According to the 2016 Household Energy Use report by the World Health Organization (WHO), alternatives fuels are more commonly used for the following activities:

• Cooking.
• Heating.
• Lighting.

Learn more about how you can manage your energy costs: 

In Alberta, the energy market is deregulated, meaning consumers are free to select the energy products that suit their requirements. EnergyRates.ca, a free website in Canada, an unbiased cost comparison tool that can help you find the best energy rates in your area. Residential, small business, small commercial, large commercial and industrial electricity and natural gas consumers can all use EnergyRates.ca. It’s easy – all you need to do is fill in the form above to get started.