Douglas Dagan Of Suburban Propane On How they Are Creating Renewable Energy

An Interview With Martita Mestey

Build Strong Partnerships. Collaboration is key in the renewable energy sector. Partnerships can provide access to new technologies, markets, and expertise. For instance, collaborations with dairy farms have been essential for our RNG projects.

As the world grapples with climate change and environmental degradation, the shift towards renewable energy has never been more critical. Innovative companies are at the forefront of this transformation, developing sustainable energy solutions that reduce carbon footprints and promote a greener future. How are these companies driving the renewable energy revolution, and what impact are they making on the environment and the economy? As a part of this series, I had the pleasure of interviewing Doug Dagan.

M. Douglas Dagan is the Vice President of Strategic Initiatives & Renewable Energy at Suburban Propane, a New York Stock Exchange listed master limited partnership (ticker: SPH) headquartered in Whippany, NJ. Suburban Propane is a nationwide distributor of propane, renewable energy, and related products and services, with a legacy of more than 95 years of innovation, growth, and quality customer service.

In his role, Mr. Dagan reports directly to the President and CEO, spearheading the company’s strategic growth and diversification into renewable energy. He is responsible for identifying, analyzing, and executing transformative acquisitions, strategic partnerships, and investments that align with the company’s long-term vision for a clean energy future.

Mr. Dagan brings over two decades of comprehensive experience at the intersection of renewable energy, environmental policy, and climate change advocacy. Throughout his career, he has played a pivotal role in shaping and advancing the clean energy transition. His expertise spans advising a wide range of public and private entities on the development and implementation of renewable energy projects, navigating the complexities of energy regulations and advocacy, and championing climate change mitigation strategies.

Before joining Suburban Propane, Mr. Dagan held influential positions across various sectors, demonstrating his versatility and leadership in both the public and private spheres. He previously worked in private practice and with state, national, and international organizations including the Massachusetts Department of Environmental Protection, the Natural Resources Defense Council, and the United Nations Framework Convention on Climate Change.

Mr. Dagan’s unique background, combining a strong foundation in chemistry with advanced expertise in renewable energy law and policy, positions him as a thought leader in the energy transition. His deep understanding of both the scientific and regulatory aspects of the energy transition enables him to devise practical, forward-thinking solutions to some of the most pressing clean energy challenges of our time.

Mr. Dagan serves on several corporate and nonprofit boards and industry groups including; the Board of Directors of the Low Carbon Fuels Coalition, the Board of Directors for the Advanced Biofuels Association, the Executive Committee of the International DME Association, and the rLPG and rDME Committees of the World LPG Association.

Mr. Dagan holds a bachelor’s degree in chemistry and environmental studies from Middlebury College; a master’s degree in environmental management, from Yale University; a master’s degree in renewable energy policy, and a Juris Doctor degree in energy law from Vermont Law School.

Residing in New Jersey with his wife, Mr. Dagan enjoys skiing, theater, and traveling in his free time.

Thank you so much for joining us in this interview series! Before we dig in, our readers would like to get to know you. Can you tell us a bit about how you grew up?

I grew up in New England, I went to elementary school in Massachusetts and New Hampshire, high school in Maine, college in Vermont, and graduate school in Connecticut. I now live in New Jersey but consider myself a proud New Englander!

Can you share the most interesting story that happened to you since you began your career?

While it’s challenging to pinpoint a single ‘most interesting’ story, I find that the journey itself has been the most fascinating aspect of my career. My path has been a tapestry of diverse experiences, each contributing to my current role in renewable energy.

I began in scientific research, which laid the foundation for my understanding of climate issues. From there, I transitioned into government policy work, collaborating with agencies to shape environmental regulations. This led me to advocacy work with nonprofit organizations, where I honed my skills in championing causes and influencing public opinion.

As my career progressed, I found myself drawn to the legal and financial aspects of environmental work. I practiced as an attorney, gaining invaluable insights into the regulatory landscape of renewable energy. Now, as a corporate executive, I’m applying all these varied experiences to drive strategic initiatives in the renewable energy sector.

What’s truly interesting is the common thread that has woven through each of these seemingly disparate roles: a unwavering commitment to addressing and mitigating the root causes of climate change and advancing renewable energy solutions. This consistent focus has not only guided my career choices but has also allowed me to approach the complex challenges of our industry from multiple perspectives — scientific, policy-oriented, legal, and now, corporate strategic.

Are you working on any exciting new projects now? How do you think that will help people?

At Suburban Propane, we’re advancing renewable energy through our Suburban Renewables platform. Currently, we’re evaluating several exciting opportunities in the realms of Renewable Natural Gas (RNG), renewable propane, and clean hydrogen. These projects aren’t just about business growth; they’re about shaping a sustainable future for our planet. Our commitment to the clean energy transition is multifaceted and forward-thinking. We’re working on a three-pronged approach:

1. Today, we’re focusing on low carbon intensity propane, which already offers significant environmental benefits compared to many traditional fuels.
2. For tomorrow, we’re developing even lower carbon intensity solutions, potentially reaching net-zero carbon emissions through renewable propane and renewable dimethyl ether (rDME).
3. Looking further ahead, we’re investing in the renewable energy that will power the future.

This strategic approach isn’t just about reducing emissions; it’s about revolutionizing how we think about and use energy. We believe these initiatives will have a substantial positive impact on the environment while allowing us to continue our 95-year legacy of safely and reliably delivering energy to satisfied customers.

By investing in these innovative technologies and renewable energy sources, we’re not only helping to combat climate change but also ensuring energy security and affordability for communities across the nation. Our goal is to make clean energy accessible and practical for everyday use, which we believe will significantly improve quality of life and contribute to a healthier planet.

Ok super. Thank you for all that. Let’s now shift to the main focus of our interview. What innovative technologies are you implementing to enhance renewable energy production?

At Suburban Propane, we’re implementing a three-pronged approach to enhance renewable energy production, leveraging our core competencies in safety, logistics, and customer satisfaction. Our renewable energy platform focuses on low carbon intensity propane, biogas from anaerobic digestion and Renewable Natural Gas (RNG), and clean hydrogen.

Low Carbon Intensity Propane

We’re pioneering innovative blends of traditional propane with renewable propane and renewable dimethyl ether (rDME). As the only provider of commercial Propane+rDME product today, we’ve made significant strides in blending technology and compatibility testing. Our ongoing innovation aims to identify the maximum rDME blend level that can remain a true drop-in replacement for traditional propane. However, we face challenges in this sector. Producers often prioritize using renewable propane for their operational needs rather than selling it on the open market. Additionally, consumers have been hesitant to pay premium prices for renewable propane despite its environmental benefits. To address these issues, we’re developing strategic partnerships, exploring purpose-driven production pathways, and working to better demonstrate the value proposition to consumers.

Anaerobic Digestion and RNG

This segment currently represents the largest portion of our renewable energy platform. We have operations in Arizona and Ohio, with construction underway in New York. Our approach focuses on both dairy manure and organic waste feedstocks, and we’re evaluating other sources like poultry litter and swine waste. What sets us apart is our commitment to excellence and long-term sustainability. We’re not just investing in RNG projects; we’re developing high-quality production sites that will be integral to our energy solutions for decades to come. This approach aligns with our goal of safely delivering energy to satisfied customers for the next 95 years and beyond.

Clean Hydrogen

While still in development, we see great potential in clean hydrogen from RNG and distributed hydrogen generation using low carbon intensity propane as a carrier. Given the extensive existing propane infrastructure and the need to scale hydrogen availability nationwide, we believe low CI propane can play a crucial role in this transition. Furthermore, as the clean hydrogen market grows, there will be an increasing need for efficient distribution networks. We’re actively exploring how we can leverage our expertise in energy distribution to play a significant role in the emerging clean hydrogen distribution space.

How do you balance economic viability with environmental responsibility in your renewable energy projects?

Balancing economic viability with environmental responsibility is a critical aspect of our approach to renewable energy projects at Suburban Propane. We firmly believe that for renewable energy innovations to achieve mass market adoption and long-term sustainability, they must be economically viable. This balance is not just about immediate profitability, but about creating sustainable solutions that can drive the clean energy transition at scale. Our strategy for achieving this balance involves several key components:

1. Disciplined Capital Deployment: When evaluating where to invest our resources, we employ a rigorous assessment process. This ensures that the return on investment for each project is not only meaningful but also sustainable in the long term. We carefully analyze factors such as market potential, technological readiness, and scalability to make informed decisions.
2. Government Collaboration: We recognize the crucial role that government support plays in developing nascent renewable energy markets. Tax credits and other incentives are vital in making returns attractive enough to accelerate the transition to clean energy. These incentives help bridge the gap between current costs and future economies of scale, allowing for investments that might otherwise be economically challenging in the short term.
3. Long-Term Perspective: While we prioritize economic viability, we also take a long-term view of our investments. Some renewable technologies may not be immediately profitable but have significant potential for future growth and environmental impact. We factor this potential into our decision-making process, balancing short-term returns with long-term sustainability goals.
4. Innovation and Efficiency: We continuously seek innovative ways to improve the efficiency of our renewable energy projects. This not only enhances their environmental benefits but also improves their economic performance, creating a virtuous cycle of sustainability and profitability.
5. Stakeholder Engagement: We engage with various stakeholders, including customers, investors, and local communities, to ensure our projects deliver value on multiple fronts. This holistic approach helps us create solutions that are not only environmentally responsible but also economically beneficial to the communities we serve.

What are the biggest challenges your company faces in the renewable energy sector, and how are you addressing them?

As we navigate the renewable energy sector, Suburban Propane faces several significant challenges, but we’re addressing them head-on with innovative solutions and strategic initiatives.

One of our primary challenges is the need for substantial investment in new technologies and infrastructure to support our transition to renewable energy sources. This includes developing and scaling up production of renewable propane, renewable dimethyl ether (rDME), and renewable natural gas (RNG). To address this, we’ve established Suburban Renewables as a dedicated platform for our renewable energy assets and technologies. This allows us to focus our resources and expertise on these critical areas of development.

Another challenge is the current limited production and availability of renewable propane and rDME. We’re tackling this by forming strategic partnerships and making key investments.

Market adoption and consumer education represent another hurdle. Many customers are not yet fully aware of the benefits and availability of renewable energy alternatives like renewable propane or rDME. We’re addressing this through our ‘Go Green with Suburban Propane’ initiative, which focuses on educating consumers, legislators, and other stakeholders about the benefits of propane and its renewable variants for a sustainable energy future.

Regulatory challenges and policy uncertainties also pose difficulties in the renewable energy sector. We’re actively engaging with policymakers and industry associations to advocate for supportive policies and incentives that recognize the role of renewable propane and other innovative fuels in the clean energy transition.

Lastly, balancing economic viability with environmental responsibility is an ongoing challenge. We’re addressing this by taking a disciplined approach to capital deployment, ensuring that our investments in renewable energy not only contribute to sustainability goals but also provide meaningful returns. We’re also leveraging government incentives and tax credits to make these investments more attractive and accelerate the transition to clean energy.

By facing these challenges proactively and leveraging our 95-year legacy of reliable energy delivery, we’re positioning Suburban Propane as a leader in the transition towards a more sustainable and resilient energy future.

How do your renewable energy solutions contribute to reducing carbon emissions and combating climate change?

At Suburban Propane, our renewable energy solutions play a crucial role in reducing carbon emissions and combating climate change. We’ve developed a multi-faceted approach that leverages various technologies and strategies to maximize our impact.

Firstly, our low carbon intensity propane blends are making a significant difference. By incorporating renewable propane and renewable dimethyl ether (rDME) into our fuel offerings, we’re reducing the carbon footprint of other fossil fuels. Traditional Propane and Propane+rDME blend, offers significant reduction in carbon emissions compared to diesel and gasoline. This provides an immediate and practical solution for customers looking to reduce their environmental impact without significant changes to their existing infrastructure.

Our investments in Renewable Natural Gas (RNG) production are another key contributor to emission reduction. Through our anaerobic digestion facilities in Arizona, Ohio, and soon in New York, we’re capturing methane from organic waste and dairy manure that would otherwise be released into the atmosphere. This not only prevents a potent greenhouse gas from contributing to climate change but also produces a renewable fuel that can replace fossil natural gas in various applications.

Moreover, our exploration of clean hydrogen technologies holds great promise for future emission reductions. By investigating the use of RNG and low carbon intensity propane as feedstocks for hydrogen production, we’re paving the way for a cleaner hydrogen economy. This could have far-reaching implications for reducing emissions in hard-to-decarbonize sectors like heavy transportation and industrial processes.

It’s also worth noting that our traditional propane business continues to contribute to emission reductions by providing a lower-carbon alternative to other more carbon intensity fossil fuels in many applications. As we transition to more renewable options, propane serves as an important bridge fuel, offering immediate carbon reductions while we scale up our renewable technologies.

Importantly, our solutions don’t just address direct emissions from fuel consumption. By focusing on waste-to-energy projects like our RNG facilities, we’re also tackling emissions from waste management, creating a double impact on climate change mitigation.

Lastly, our efforts extend beyond just providing low-carbon fuels. Through our ‘Go Green with Suburban Propane’ initiative, we’re educating consumers and stakeholders about the importance of transitioning to cleaner energy sources. This helps drive broader adoption of renewable energy solutions, amplifying our impact on carbon emission reduction.

In essence, our renewable energy solutions are designed to offer immediate, practical ways to reduce carbon emissions while also investing in technologies that will drive deeper decarbonization in the future. By providing a range of options — from cleaner traditional fuels to cutting-edge renewable technologies — we’re enabling a flexible, resilient approach to combating climate change that can adapt to different needs and contexts.

What are “5 Things You Need to Know to Create a Successful Renewable Energy Business” and why?

Based on my experience leading Suburban Propane’s renewable energy initiatives, here are five crucial things to know when creating a successful renewable energy business:

1. Understand the Regulatory Landscape. The renewable energy sector is heavily influenced by government policies, incentives, and regulations. A deep understanding of this landscape is crucial for navigating opportunities and challenges. For example, at Suburban Propane, we closely monitor and engage with policy developments related to renewable fuels, carbon credits, and clean energy incentives. This knowledge helps us make strategic decisions and capitalize on opportunities like tax credits for renewable natural gas production.
2. Invest in Diverse Technologies. The renewable energy field is rapidly evolving, and relying on a single technology can be risky. Diversification helps mitigate risks and opens up multiple pathways to success. In our case, we’ve invested in a range of technologies including renewable propane, rDME, RNG, and are exploring clean hydrogen. This diversified approach allows us to adapt to market changes and technological advancements.
3. Build Strong Partnerships. Collaboration is key in the renewable energy sector. Partnerships can provide access to new technologies, markets, and expertise. For instance, collaborations with dairy farms have been essential for our RNG projects.
4. Focus on Scalability and Economic Viability. While environmental benefits are crucial, a successful renewable energy business must also be economically sustainable and scalable. At Suburban Propane, we carefully evaluate the economic potential of each project. We ensure that our renewable energy initiatives not only contribute to sustainability goals but also provide meaningful returns on investment.
5. Prioritize Customer Education and Engagement. Many renewable energy solutions require changes in customer behavior or perception. Educating customers about the benefits and practicalities of renewable energy is crucial for adoption. Our ‘Go Green with Suburban Propane’ initiative is a prime example of how we’re working to educate consumers, legislators, and other stakeholders about the benefits of propane and its renewable variants.

What are the long-term goals for your company’s renewable energy projects?

At Suburban Propane, our long-term goals for renewable energy projects are ambitious and multifaceted, aligning with our commitment to lead the industry’s transition to a sustainable future. These goals are designed to not only transform our company but also to make a significant impact on the broader energy landscape.

First and foremost, we aim to increase the proportion of renewable and low-carbon energy available to our customers. This includes scaling up our distribution of renewable propane, Propane+rDME, Renewable Natural Gas (RNG) and bring clean hydrogen to market.

We’re also setting our sights on becoming a leader in the development and commercialization of innovative renewable energy technologies. Our work with rDME is a prime example of this, and we plan to continue pushing the boundaries of what’s possible in renewable energy. We envision a future where we’re not just adopting existing technologies, but actively shaping the next generation of clean energy solutions.

Another key long-term goal is to expand our Renewable Natural Gas operations. We look to increase our RNG production capacity through new projects and strategic opportunities, aiming to become one of the largest RNG producers in the country. This expansion will not only increase our renewable energy output but also contribute to solving waste management challenges in agricultural and urban settings.

In the realm of clean hydrogen, our long-term goal is to establish Suburban Propane as a significant player in this emerging market. We’re exploring various pathways. Our aim is to develop a robust clean hydrogen offering that can serve diverse sectors, from transportation to industrial applications.

Lastly, we have a long-term goal of being an indispensable partner in the clean energy transition by helping our existing customers and future customers transition to lower-carbon energy solutions. We aim to leverage our 95-year legacy of reliable energy delivery to become a trusted provider of diverse renewable energy solutions, helping communities, businesses, and governments meet their sustainability goals.

These long-term goals reflect our commitment to not just adapting to the changing energy landscape, but actively driving the transition to a more sustainable future. We believe that by pursuing these objectives, we can create significant value for our customer, employees, unit holders and the communities we serve.

How do you engage with and educate the public about the benefits of renewable energy?

Public engagement and education are crucial components of our renewable energy strategy at Suburban Propane. We believe that fostering understanding and awareness is key to accelerating the adoption of renewable energy solutions. Our approach to engaging with and educating the public is multifaceted and leverages various channels and initiatives.

One of our primary vehicles for public education is our ‘Go Green with Suburban Propane’ initiative. This comprehensive program is designed to inform consumers, legislators, and other stakeholders about the environmental benefits of propane and its renewable variants. Through this initiative, we provide accessible information about how these energy solutions can contribute to reducing carbon footprints and achieving sustainability goals.

We also actively participate in industry conferences, webinars, and public forums. These platforms allow us to share our expertise, discuss the latest developments in renewable energy, and engage directly with interested parties. It’s an opportunity to not only educate but also to learn from others and stay attuned to public concerns and interests regarding renewable energy.

Social media and digital marketing play a significant role in our public engagement strategy. We use these platforms to share informative content, success stories, and updates about our renewable energy projects. This approach allows us to reach a broader audience and engage in two-way communication with the public, answering questions and addressing concerns in real-time.

We also engage with policymakers and government officials to advocate for renewable energy policies and educate them about the potential of various renewable technologies. This work is crucial in shaping a supportive regulatory environment for renewable energy adoption.

Lastly, we see our customers as partners in our renewable energy journey. Through these diverse engagement and education efforts, we aim to demystify renewable energy, highlight its benefits, and empower the public to play an active role in the transition to a more sustainable energy future. We believe that an informed and engaged public is essential for the widespread adoption of renewable energy solutions.

How can our readers further follow your work online?

• https://www.linkedin.com/in/dougdagan/
• https://www.linkedin.com/company/suburban-propane
• https://m.facebook.com/suburbanpropane
• https://www.instagram.com/suburbanpropaneofficial

This was very inspiring and informative. Thank you so much for the time you spent with this interview!

About The Interviewer: Martita Mestey is celebrated as a leader in sustainable agriculture and AgTech due to her tireless efforts to modernize the industry, placing a strong emphasis on equity and sustainability. As the founder of FarmdOut, her commitment to harnessing advanced technology and substantiated research shines through her endeavors to confront ecological issues within contemporary agriculture. Guided by Mestey, FarmdOut has become a pioneer in mapping all farms across the United States and Puerto Rico. By leveraging satellite imagery, computer vision, sensor technology, and Geographic Information Systems (GIS), this initiative yields comprehensive data that empowers farmers to make informed decisions about crop cultivation, land use, and sustainable practices. Mestey is renowned for championing the welfare of farmers, frequently addressing issues of burnout while fostering resilience within the farming community. Her fervor for cultivating the next generation of farmers is evident in her focus on diversity, innovation, and eco-friendly practices. In addition to her hands-on work with FarmdOut, Mestey also disseminates her knowledge and enthusiasm via her popular interview series in Authority Magazine. This initiative stimulates broader engagement in the transition towards a healthier, more sustainable food system. At its core, Mestey’s mission is to promote a more democratic agricultural industry, advocating for a food system that is simultaneously sustainable and equitable.

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Douglas Dagan Of Suburban Propane On How they Are Creating Renewable Energy was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.