Nexio announced the Propane Education & Research Council (PERC) has executed a $6 million contract to support Environmental Protection Agency (EPA) and California Air Resources Board (CARB) certification of a dedicated propane-powered commercial vehicle platform and engine for the U.S. market. This milestone expands the availability of practical, lower-emission solutions for commercial fleet operators nationwide.
The investment will support certification of medium to heavy-duty Class 7 trucks, and a purpose-built 7.2-liter supercharged V8 propane engine manufactured by Nexio Power, Inc. These configurations are designed for a range of commercial applications, including propane bobtail delivery and other work truck vocations.
The approval reflects the propane industry's continued commitment to advancing technologies that strengthen propane's role in commercial transportation, an area where fleet operators are actively seeking proven alternatives to diesel that deliver measurable economic and emissions benefits without the infrastructure complexity of other fuel transitions.
An Investment in the Industry's Future
Gary Winemaster, CEO of Nexio Power, Inc. commented, "What makes this partnership with PERC meaningful goes beyond funding. The feedback we've received from propane marketers, distributors, and fleet operators has directly shaped Nexio's product and been embedded in our development from day one."
"This is also about the propane industry investing in its own future. Fleets that adopt propane trucks gain a clear cost-of-ownership advantage, reducing emissions while reinforcing their commitment to the industry."
Winemaster continued, "Our vision goes beyond bobtails. We see propane powering Class 5 through Class 8 vehicles across a wide range of work truck applications. As adoption grows, it drives greater fuel demand, leading to more deliveries and more bobtails on the road, creating a self-reinforcing cycle of growth. This support expands domestic propane consumption, strengthens U.S. energy security, reduces exports, and improves margins from midstream providers to local marketers, aligning decarbonization with long-term industry profitability. We're excited to help drive adoption across the propane industry."
Addressing a Market Gap
The PERC-supported certification program addresses a recognized gap in the commercial vehicle market, the lack of a widely available, purpose-built propane-powered truck, with the same power and performance as a diesel, designed specifically for the duty cycles and operational requirements of propane distribution and commercial fleets.
Nexio's platform is engineered from the ground up for propane. The 7.2-liter V8 engine delivers 330 horsepower and 775 lb.-ft. of torque, paired with an Allison 3500 RDS automatic transmission and a liquid propane fuel system. The design eliminates the need for diesel exhaust fluid (DEF) and complex aftertreatment systems, reducing common failure points that drive maintenance costs and downtime in diesel fleets.
Fleet operators can expect projected annual fuel savings of approximately $25,000* per truck compared to diesel, along with reduced maintenance complexity and significantly lower emissions.
Tucker Perkins, CEO of the Propane Education & Research Council (PERC), commented "PERC's partnership with Nexio Power Inc. demonstrates our commitment to advancing technology and opens up a new market for medium-duty fleets in on and off-road applications. Investing in this project supports PERC's mission to displace diesel, providing fleets with the opportunity to significantly reduce emissions, fuel costs, and maintenance expenses with clean, affordable, and domestically produced propane."
Industry Engagement Shaped the Product
The PERC approval followed a public comment period that generated 14 responses, reflecting strong industry engagement. Supporters emphasized the importance of a dedicated propane delivery vehicle, while others raised thoughtful questions based on lessons learned from prior propane vehicle initiatives.
That feedback, along with insights gathered from ride-and-drive events at industry shows over the last couple of years, has been instrumental in refining the vehicle's design. Enhancements include updated cabin features, wider step configurations for improved driver ingress and egress, and safety system integration tailored to U.S. market requirements.
What Comes Next
- Certification & Demonstration: Nexio is building a fleet of vehicles for EPA and CARB certification testing, with approximately seven trucks scheduled for real-world evaluation with propane marketers.
- Manufacturing: Through a multi-year partnership with the Lufkin Economic Development Corporation, Nexio is developing a 35-acre corporate campus and manufacturing facility on Interstate 69 to support engine production and powertrain assembly.
- Production Timeline: Production vehicles are targeted for early 2027, with the order book now open as interest continues to build across the propane and commercial fleet markets.
Learn more at www.nexiotrucks.com and www.propane.com.