Propane and Nuclear: A Smarter, Cleaner Energy Mix for Michigan

Michigan’s energy structure is at a turning point. The state is pushing toward ambitious climate goals while trying to keep power reliable and affordable. A recent Crain’s Detroit editorial made the case for small modular nuclear reactors (SMRs) as part of the clean energy solution.

Michigan needs more low-emission, always-on, always-available power. With that logic, nuclear seems to be the clear-cut answer. But placing all of our eggs in nuclear’s basket would defeat the purpose of finding an abundant, widely accepted clean energy solution. 

So, what is the solution? All signs are pointing towards an energy initiative driven by fuel diversity. Taking an all of the above” approach to energy, utilizing alternative fuels, including nuclear and propane, may answer the state’s energy problems. 

Propane: Michigan’s Low-Carbon Workhorse

Why Rural Michigan Depends on Propane

Propane has continually powered Michigan for over a century; for much of the state, it’s a necessity. An estimated 320,000 Michigan homes use it for primary heat. It’s the most affordable and reliable energy option for areas without natural gas lines.

Lower Emissions, High Reliability

Propane heats rural homes and fuels school buses while providing emergency backup during storms. It’s transportable, scalable, and doesn’t rely on the electric grid, an essential in a state notorious for its unpredictable weather. When comparing emissions between the two, propane produces ~50% of the harmful emissions per BTU.

Fuel Diversity Builds Energy Security

Michigan’s Changing Energy Demands

Michigan’s energy grid is evolving fast—more renewables, EVs, and peak demand during storms and heat waves. But progress brings new vulnerabilities, especially for electricity. Relying on one energy source for everything increases the risk exponentially. Michigan’s grid has consistently shown signs of strain due to policy shifts promoting electric and renewables.

The Case for Backup Fuels

That’s why fuel diversity matters. It mitigates risk by diversifying energy sources. If the power goes out, propane keeps working. When natural gas prices spike, propane prices go unchanged. Propane can bridge the gap when solar output inevitably dips in Michigan’s winter months.

What Regulators Are Saying

The Michigan Public Service Commission emphasized this in its Statewide Energy Assessment: “Energy security must include diverse, reliable sources that can perform when the grid is under stress.” This isn’t merely a theory; Michigan Propane Autogas is already helping diversify the state’s fuel mix in transportation. More school districts and fleet operators are switching to propane-powered buses to reduce emissions, lower costs, and avoid complete reliance on electric infrastructure.

The North American Electric Reliability Corporation (NERC) warned in a 2023 report that parts of the Midwest, including Michigan, face “elevated risk” of winter reliability issues as traditional power sources go down faster than a backup source can be implemented.

Propane is already part of the solution. It can be stored onsite and delivered to nearly any area. At the same time, the transition to operating on it is virtually seamless, making it an ideal backup fuel and complement to renewables and nuclear energy.

Real-World Reliability

Propane in Michigan’s Coldest Moments

In February 2021, record-low temperatures caused widespread outages across the Midwest and South. While Michigan avoided the worst of it, its rural areas saw many blackouts. In places like Gaylord and Cadillac, propane systems kept furnaces running when electricity was down.

Fleet Performance in Extreme Weather

Fleet vehicles running on propane autogas kept moving while diesel engines failed in the cold. These aren’t hypotheticals—they’re real examples of propane delivering energy resilience when other systems fell short.

Nuclear’s Promise—And Its Pace

The Role of SMRs in Michigan’s Future

Michigan isn’t just watching nuclear innovation from the sidelines. The state and its largest energy companies are actively working to bring atomic back. The Palisades plant on Lake Michigan, which closed in 2022, is now slated for a potential restart with federal backing. There is bipartisan support for this initiative between Michigan and the federal government, as Michigan legislation has pushed for U.S. Department of Energy support, making the state a national test case for reviving nuclear power as part of a long-term clean energy strategy.

That push is essential, but also a reminder of how long these projects take. Permitting, investment, and public review will stretch over the years. In the meantime, Michigan needs flexible, available solutions like propane to maintain resilience and reduce emissions.

Momentum is picking up in Michigan’s nuclear discussion. In April 2025, Crain’s Detroit reported that DTE Energy is studying an expansion of its nuclear fleet at Michigan’s Fermi Nuclear Site to meet rising electricity demand from data centers and AI-related infrastructure. This move highlights nuclear’s future role in Michigan’s energy mix—but also underscores the necessity of fuel diversity, including wind, solar, natural gas, and propane. 

All that said, nuclear energy, especially SMRs, has the potential to benefit the state greatly. These next-gen reactors are designed to be safer, smaller, and more flexible than traditional plants. Agencies like the U.S. Department of Energy and labs like Argonne National Laboratory are investing heavily in these technologies.

Michigan’s Nuclear Restart Efforts

But progress takes time. SMRs face long permitting timelines, high upfront costs, and public hesitation. Even under optimistic projections, most won’t be operational in Michigan for several years.

These complications leave a gap, and propane is already filling it, not as a temporary fix but as a permanent, clean fuel supporting the transition.

Propane and Nuclear: Better Together

Propane and nuclear aren’t competing—they’re complementary. Nuclear provides large-scale baseload power. Propane supports heating, transport, and off-grid energy.

Different Jobs, Shared Mission

This kind of layered strategy is exactly what Michigan needs for its energy initiative. Different fuels for different jobs work together to build a resilient, low-emission energy mix.

Propane’s Expanding Impact

Propane-fueled school buses are already reducing greenhouse gases and air pollution. Renewable propane is expanding across the Midwest. Propane fleets are cutting emissions in sectors where battery-electric tech isn’t ready.

Michigan Needs an All-of-the-Above Strategy

We don’t need to pick one winner in Michigan’s energy future. We need a mix of rural, urban, industrial, and residential. Propane delivers lower emissions, cleaner fleets, and energy security where the grid falls short. Nuclear will help power the backbone. And together, they create a smarter, stronger system.

Propane’s Long-Term Role in the Clean Transition

Propane isn’t just a bridge fuel. It’s a clean, proven, Michigan-ready solution that strengthens fuel diversity and supports every part of the state’s energy strategy. If Michigan is serious about a cleaner, more reliable future, then fuel diversity isn’t optional—it’s essential.