The Oban lifeboat was launched on Thursday evening after the explosion near Puilladobhrain, which blew out the boat's windows and hatch.
The owner managed to escape the vessel and rowed himself ashore, making his way to Oban hospital. He was later transferred to Glasgow for treatment.
The lifeboat crew towed the yacht back to Oban to be safely berthed.

Edward Furneaux, 74, died after crashing his car into a tree in Kewstoke Road, Worle, on the morning of 19 January.
The body of his 70-year-old wife, Anne, was found at a property in Pilgrim's Way the same day.
No-one else is being sought in the murder inquiry into Mrs Furneaux's death, Avon and Somerset Police said.

Footage secretly filmed by France 2 TV shows Francoise Olcay selling dinghies and life jackets to migrants hoping to reach the Greek islands.
The UN says 124,000 people reached Greece's shores by sea in the first seven months of 2015.
Ms Olcay said the items would be bought elsewhere if she did not sell them.
Admitting that she was taking part in the trade, she alleged that local Turkish authorities were also involved.
She said others would have taken her place if she stopped selling supplies to the migrants.
The BBC's Hugh Schofield in Paris says that while honorary consuls are not members of the diplomatic corps, the news will be a big embarrassment to the French foreign ministry.
The reporter on France 2 TV who uncovered the news had been investigating where migrants in Bodrum were purchasing their supplies.
His inquiries brought him to a large store, with a French flag flying outside and a sign at the entrance saying "French honorary consul".
Ms Olcay confirmed she was the consul, and that she sold boats to the migrants despite knowing it could lead to disaster.
She told the reporter that it was wrong but everyone was doing it.
Thousands of refugees have used Bodrum as a gateway to fulfil their dream of reaching Europe.
However, correspondents say the number of nightly departures appears to have slightly decreased after Turkish police stepped up patrols in the wake of the death of Alan Kurdi.
The body of the three-year-old was washed up at Bodrum last week, after he drowned along with his mother, four-year-old brother and nine other Syrians as they attempted to sail to the Greek island of Kos.
Images of the boy's body sparked international outrage and highlighted the dangers faced by migrants who make the crossing.
Alan Kurdi death: A Syrian Kurdish family forced to flee
Migrant crisis in maps and charts
A yachtsman was treated for burns following an explosion on a vessel anchored off an island near Oban.
[NEXT_CONCEPT]
A husband and wife who died in an apparent murder-suicide in North Somerset have been named.
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France has suspended its honorary consul in the Turkish port of Bodrum after a TV report showed a shop she owns selling dinghies to migrants.