Oberon and SHV Energy join forces to accelerate use of renewable DME in transportation


Type of post: NEWS.

Oberon Fuels (company aimed at decarbonizing transportation) and SHV Energy (the world’s largest distributor of propane fuel) are partnering to accelerate the use of renewable dimethyl ether (rDME) to reduce the carbon footprint of transportation fuel. When blended with propane, rDME enables a significant reduction of the carbon intensity.
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Figure 1. Oberon and SHV Energy join forces to accelerate use of renewable DMR in transportation

Using its proprietary small-scale process, Oberon Fuels focuses on the production of 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. Over 30 M$ 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 M$ grant to upgrade its existing DME pilot facility to demonstration scale and facilitate the first production of rDME in USA, with a target production capacity of approximately 1.6 million gallons 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 (with only a 20% blend of rDME, propane’s carbon intensity value is reduced from 83 gCO2e/MJ to 11 gCO2e/MJ.);
3) SHV Energy’s extensive global distribution network will facilitate greater use of rDME in numerous energy applications worldwide.

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