Published - February 12th, 2020
SHV Energy and Oberon Fuels, a producer of ultra-low-carbon, renewable dimethyl ether, are partnering to accelerate the use of renewable DME to reduce the carbon footprint of transportation fuel. When blended with propane, rDME enables propane to approach carbon neutrality.
“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,” comments Bram Gräber, Chief Executive Officer at SHV Energy. “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 ultra-low carbon fuel to market.”
Over $30 million in private funding has been invested in Oberon Fuels since its founding in 2010. Additionally, the State of California in 2019 awarded Oberon a $2.9 million grant to upgrade its existing DME pilot facility to demonstration scale and facilitate the first production of rDME in the U.S., with a target production capacity of approximately 1.6 million gallons of DME per year.
Building on this momentum, SHV Energy and Oberon will leverage their collaboration in three ways: 1) funding will augment the grant to further develop DME fuelling infrastructure and vehicle development; 2) SHV Energy’s technical resources will help test the use of rDME blended with propane, and; 3) SHV Energy’s extensive global distribution network will facilitate greater use of rDME in numerous energy applications worldwide.
California-based Oberon Fuels is on a mission to decarbonise transportation by converting biogas and industrial waste streams into high-performing, high-value molecules. Using its proprietary small-scale process, Oberon Fuels focuses on the production of renewable dimethyl ether (rDME) from waste and/or renewable resources. Oberon Fuels’ pilot plant in Brawley, California, produces fuel-grade DME in North America, which has been used by Volvo Trucks, Mack Trucks, and Ford Motor Company for vehicle demonstrations around the world.
Ruben Martin, Chief Executive Officer of Oberon Fuels: “By partnering with the world’s leading distributor of propane, we hope to further accelerate the use of rDME globally to help decarbonise the transportation sector and beyond.”