Oberon Fuels, San Diego, California, United States: Oberon Fuels empowers net-zero with renewable fuels

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Founded in 2010, Oberon Fuels takes aim at the massive propane and shipping market – responsible for up to 4% of global carbon emissions – by being the first company to commercialize renewable production of renewable dimethyl ether (renewable DME).

Oberon converts organic waste like chicken manure into its carbon-negative rDME® fuel. The renewable DME provides companies with a sustainable fuel that can immediately lower the carbon intensity of propane. Additionally, renewable methanol from the process can be used to power the enormous maritime shipping industry. 

Oberon’s Maverick Innovation Center incorporates this technology with a capacity of 1.5 million gallons of Oberon’s rDME® fuel per year, and marks the first time renewable DME has been produced at commercial scale. Moreover, Oberon's rDME® fuel is a highly efficient, convenient and cost-effective way of making and transporting renewable hydrogen. The unique molecular properties of renewable DME can transport hydrogen at a fraction of the cost (70% less expensive) by using existing and widely used propane storage and distribution infrastructure. Oberon’s renewable-DME-to-hydrogen, patent-pending reformer is being fabricated and will be commissioned at the Maverick Innovation Center this year. This first-of-its-kind innovation can turbocharge the hydrogen industry.

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Over the past 12 months, Oberon has reliably delivered renewable DME to over 450 companies seeking to reduce emissions, including Suburban Propane, Lipigas, DCC, Volvo Trucks, Mack Trucks, and Ford. Oberon’s rDME® fuel can reduce the carbon intensity of propane by up to 60% when blended, offering potential reductions in global CO2 of 750 million metric tons per year. The company has also secured a multi-site feedstock agreement with a major agricultural partner to be unveiled later this year, critical to ensure reliable renewable DME supply.

In 2024, Oberon announced a first-of-its-kind solar steam power purchase agreement to eliminate the upfront capital requirements needed to deploy solar steam, while enabling Oberon to double output capacity and slash the carbon intensity of renewable fuels by up to 90%. The Department of Energy has funded the project and recognized it as a DOE success story for reducing natural gas with zero-emission solar heat. This breakthrough financing structure is critical for industrial customers seeking renewable fuels to achieve pressing net-zero commitments.

Oberon has added to its momentum with several notable hires over the past year, including its first Chief Financial Officer Ann Anthony and a new Chief Operating Officer Derek Winkel. Both are positioned to grow the business as it scales up the commercializations of its renewable DME and methanol. [REDACTED FOR PUBLICATION]

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Consumers increasingly demand sustainable products, and sustainability regulations are tightening every day. More than 8,000 companies from countries that represent 90% of global GPD have made net-zero commitments. And 150 countries have pledged to reduce methane emissions. 

Oberon’s approach provides vital sectors, such as shipping, transportation and heating, with effective strategies to significantly lower emissions. Oberon’s carbon-negative rDME® fuel can reduce the carbon intensity of LPG by up to 60% when blended, offering real climate solutions to reduce global CO emissions. As a result, it enables companies to deliver cleaner, cost-effective solutions to their customers, address scope 3 emissions and create change throughout their industries.

When creating this market, Oberon worked with government officials and representatives to provide ongoing education as to the value of renewable DME, for everything from potential decarbonization impact to creating jobs in California’s oft-overlooked Imperial Valley. This garnered unanimous, bipartisan support for California Assembly Bill 2663. The bill lowers the tax on DME from 18 cents per gallon to 6 cents per gallon when used as a diesel replacement or blended with propane, providing parity with propane, CNG and LNG. Moreover, Oberon won a $3 million grant from the California Energy Commission to support construction of the world’s first commercial-scale renewable DME plant in Brawley, CA. Without its efforts, which spurred action in the fuel and energy ecosystem around them, DME would not be recognized as a viable pathway to decarbonization and would not be as cost-competitive or successful as it is today.

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1. https://www.oberonfuels.com/oberon-fuels-drives-down-emissions

2. https://www.oberonfuels.com/oberon-and-dcc-to-boost-renewable-dme-production-in-europe

3. https://www.oberonfuels.com/us-department-of-energy-sunvapor-and-oberon-fuels

4. https://www.oberonfuels.com/oberon-fuels-first-cfo-and-new-coo

5. https://www.oberonfuels.com/oberon-and-sunvapor-solar-steam-project

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