<article><p class="lead"><i>California-based Oberon Fuels was the first company to start commercial production of renewable dimethyl ether (rDME) from its Maverick plant in mid-2021. US LPG retailer Suburban Propane, which acquired a 39pc stake in Oberon in 2020, recently began selling this rDME in a blend with propane in California — another first. Argus spoke with Oberon's co-founder and chief operating officer Elliot Anise-Hicks at the sidelines of the DME 9 conference in Zurich:</i></p><p class="lead"><b>What are the company's plans over the rest of this year?</b></p><p class="lead">Oberon will look to build upon the success of launching "propane+rDME" with Suburban Propane in California, and to replicate this in other regional markets. And with interest from LPG markets around the world, Oberon will work with a select group of LPG companies to bring rDME blends to their respective markets.</p><p class="lead"><b>How far has Oberon and its partners progressed in getting the regulatory and tax support you need in California for propane+rDME and rDME?</b></p><p class="lead">By working with the California Air Resources Board [CARB] from early on in our introduction of rDME, Oberon has developed a strong working relationship with CARB and other key administrative bodies in the US. California made rDME legal to sell as a fuel in the state and across the country with the publication of a new industry standard [ASTM D7901] for fuel-grade DME in 2014. And with legislation passed by the state in 2020, taxation of rDME has been equalised with propane, removing the last significant hurdle for introducing rDME and blends.</p><p class="lead"><b>Does Oberon have any overseas LPG partnerships in the pipeline?</b></p><p class="lead">We have been in discussions with companies around the globe to introduce rDME in their region. The forces driving each market are unique, but the need to develop a path to decarbonisation and execute on a plan that includes rDME has been a constant. Oberon has expertise in the production and introduction of rDME, but strong partners in LPG distribution are critical to successfully deliver low carbon intensity [CI] products to the customers.</p><p class="lead"><b>When will you start using cow manure to drive down the CI of your rDME?</b></p><p class="lead">Every feedstock has advantages and disadvantages, and requires different expertise to convert to rDME or any other fuel. Oberon has focused on two feedstocks — renewable methanol and biogas from anaerobic digesters. The Maverick plant in California utilises renewable methanol. Our next few plants will be fed with biogas, with a variety of digester feedstocks in contention. A digester is a completely separate chemical process, and gathering the feedstock may vary between projects. Gathering manure at a flush-lane dairy is very different than working with a dry-lot dairy. But biogas from a digester is generally well suited to the production of rDME.</p><p class="lead"><b>Why not just sell biomethanol, or produce SAF or biomethane? </b></p><p class="lead">Decarbonising the energy infrastructure is going to require as much renewable fuel as we can produce, as fast as we can bring it on line. There will be a need for all three fuels, but they will play different roles. SAF is critical, but the [jet fuel] market is about the same size as the LPG market. Biomethanol is gaining popularity as a marine fuel, but it cannot be used to decarbonise LPG, and distribution over land as a road fuel will run into regulatory issues in many regions, such as California where it is a non-starter. Renewable DME can be used to decarbonise LPG, and can also be used to store and transport hydrogen. By utilising the existing global network of LPG assets, rDME can be the most cost effective and rapid path to deliver renewable hydrogen.</p></article>
