When most people think of gas stations, they picture rows of unleaded and diesel pumps. But in 2025, a growing number of drivers are pulling up to dispensers labeled E85, B20, renewable diesel, or even hydrogen. These niche fuels, once considered fringe, are carving out real estate at fueling stations nationwide. Why now? Because the energy landscape is shifting fast and both consumer demand and government incentives are pushing fuel diversity like never before.

In this blog, we’ll explore:

• What counts as a niche fuel in 2025
• The types of alternative fuels gaining traction
• Regional trends and brand-specific adoption
• Who’s buying niche fuels and why
• What it means for site selection, infrastructure, and investment

Defining Niche Fuels in 2025

In 2025, "niche" no longer means irrelevant. It means targeted, designed for specific vehicle types, customer segments, or sustainability goals. Here’s a breakdown of the major players:

• E85 (Flex Fuel): A blend of 85% ethanol and 15% gasoline, usable by flex-fuel vehicles.
• B20 Biodiesel: 20% biodiesel blended with petroleum diesel, compatible with most diesel engines.
• Renewable Diesel (RD): Chemically similar to petroleum diesel but produced from non-petroleum sources.
• CNG (Compressed Natural Gas): Mostly used in fleet vehicles like buses and municipal trucks.
• Hydrogen: Still niche, but growing in select states with heavy EV and fuel-cell subsidies (e.g., California).
• Propane (Autogas): Common for school buses and off-grid commercial vehicles.

While these fuels account for a small slice of national fuel volume, their availability has expanded considerably.

Where Are These Fuels Available?

Let’s look at station availability by fuel type in 2025:

‍E85 and propane have the broadest distribution, while hydrogen remains limited to select urban corridors.

Brand-Level Participation

Not every gas station chain is rushing to adopt niche fuels. But certain brands are standing out for their alt-fuel offerings:

• Shell: Invested heavily in renewable diesel in the Pacific Northwest.
• Love’s Travel Stops: Offers biodiesel and propane at hundreds of truck stop locations.
• Kwik Trip/Kwik Star: Has E85 and CNG pumps in the Upper Midwest.
• Chevron: Testing hydrogen dispensers at pilot sites in California.
• RaceTrac: Includes E85 in select Southeast locations.

These offerings are often regional and driven by nearby fleet demand or policy incentives.

Who’s Buying?

The niche fuel market in 2025 is surprisingly diverse:

• Flex-Fuel Vehicle Owners: E85 remains cheapest per gallon, drawing budget-conscious drivers.
• Environmentalists and Green Fleets: Renewable diesel and B20 appeal to fleets looking to reduce carbon emissions.
• Rural Consumers: Propane is big in agricultural areas where traditional grid energy is limited.
• Municipal and Commercial Fleets: CNG and propane dominate bus systems, government trucks, and school transport.
• Tech-Early Adopters: Hydrogen vehicle owners in California are small in number but growing.

These consumers value availability, price stability, and environmental benefits.

Regional Trends in 2025

Fuel diversity isn’t evenly distributed. For example:

• California leads in every category except propane, due to aggressive clean-energy mandates.
• Texas balances biodiesel, propane, and E85, thanks to its mix of agriculture and oil infrastructure.
• Midwestern states like Iowa and Minnesota are E85 hotspots due to corn ethanol production.
• Florida shows surprising growth in propane adoption, particularly in fleet and off-grid applications.

Economic and Regulatory Drivers

Why are gas stations offering niche fuels?

1. Incentives: State and federal grants help fund pump installation and fuel supply chain.
2. Carbon Credits: Selling low-carbon fuels brings financial offsets.
3. Fleet Partnerships: Local governments or large fleets require access to alt-fuels.
4. Sustainability PR: Brands promote their green credentials to eco-conscious consumers.

Challenges to Scaling

While niche fuels are growing, they face hurdles:

• Limited Demand: Many consumers still don’t drive compatible vehicles.
• Higher Installation Costs: Specialty pumps and tanks require capital.
• Maintenance Training: Station staff must be trained on safe handling and compliance.
• Fuel Supply Chain: Biodiesel and renewable diesel production remains regional.

Despite this, the trajectory is upward.

Future Outlook: A Blended Fueling Landscape

By 2030, analysts expect:

• E85 availability to cross 7,000 stations.
• Renewable diesel to surpass B20 in California.
• Propane and CNG to plateau unless new vehicle models emerge.
• Hydrogen stations to double but remain concentrated.

Gas stations are slowly evolving into multi-fuel hubs serving everything from Tesla EVs to CNG buses.

Final Thoughts

Niche fuels in 2025 are more than a curiosity. They’re a strategic growth area, especially for station operators in policy-forward or fleet-heavy regions. While unleaded and diesel still dominate, the age of single-fuel forecourts is ending.

If you're planning a station upgrade or site selection project, don’t overlook the potential of alternative fuels. They may just future-proof your business or open the door to new customers entirely.