Oberon Fuels, SHV Energy Partner for Renewable DME
More than $30 million in private funding has been invested in Oberon Fuels since its founding in 2010. In addition, California in 2019 awarded the company a $2.9-million grant to upgrade its existing DME pilot facility to demonstrate scale and facilitate the first production of rDME in the U.S. Target production capacity is about 1.6 MMgal. a year. Oberon sees the state-funded project as a key building block toward producing rDME statewide, and in compliance with California’s methane emission rules.
Building on this momentum, Oberon said it will leverage the collaboration with SHV Energy in three ways: funding will augment the state grant to further develop DME fueling infrastructure and vehicle deployment; SHV Energy’s technical resources will support the testing and use of rDME blended with propane; and SHV Energy’s extensive global distribution network will facilitate greater use of rDME in numerous energy applications worldwide.
“By partnering with the world’s leading distributor of propane, we hope to further accelerate the use of rDME globally to help decarbonize the transportation sector and beyond,” said Ruben Martin, CEO of Oberon Fuels. “Innovation is at the heart of SHV Energy. Building upon our pioneering work launching renewable propane in 2018, we are excited by the opportunity to convert renewable and waste feedstocks to rDME,” added Bram Graber, SHV Energy CEO. “We believe rDME has significant potential to help us achieve our ambitions to be a leader in renewable energy, and we are looking forward to working with Oberon Fuels to bring this ultralow-carbon fuel to market.”
Under ambient conditions, rDME is a gas but it can be stored as a liquid under moderate pressure, which makes it ideal for blending with propane. DME’s easy handling properties also make fueling and infrastructure relatively simple and inexpensive. DME is approved as a renewable fuel under the U.S. Environmental Protection Agency’s Renewable Fuels Standard, making it eligible for renewable identification number (RIN) credits when made from biogas under the Oberon process.
“This collaboration is a testament to the power of the rDME molecule as an innovative solution to address emissions and climate change,” said Rebecca Boudreaux, president of Oberon Fuels. “The very same rDME molecule can be used in multiple ways in the transportation sector to help fleets, businesses, and governments reduce their carbon footprint and their long-standing reliance on petroleum-based fuels.” “rDME’s dual benefits—its ability to reduce the CI [carbon intensity] of propane, as well as its ease of interoperability with propane infrastructure—make it an ideal option for the propane industry as it seeks to reduce the carbon footprint of an already clean, efficient option,” said Rebecca Groen, director of biofuels at SHV Energy.
Oberon Fuels’ mission is to decarbonize transportation by converting biogas and industrial waste streams into high-performing, high-value molecules. Using its proprietary small-scale process, Oberon focuses on the production of renewable DME from waste and/or renewable resources. The company’s pilot plant in Brawley, Calif. produces fuel-grade DME for the North American market. The fuel has been used by Volvo Trucks, Mack Trucks, and Ford Motor Co. in vehicle demonstrations around the world.
SHV Energy, one of the world’s largest LPG distributors, also provides LNG and bioLPG to consumers and companies. These cleaner energy sources help people switch away from oil and solid fuels, improving the quality of the environment. SHV operates in more than 25 countries on four continents under brands such as Calor Gas, Ipragaz, Liquigas, Primagaz, and Supergasbras. Its U.S. brand, Pinnacle Propane, is based in Texas and has expanded across the country in recent years. Operations include bulk storage and delivery, cylinder filling, and community distribution systems.
(SOURCE: The Weekly Propane Newsletter, February 24, 2020. Available by subscription)
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