San Diego-based Oberon Fuels, a producer of dimethyl ether (DME) transportation fuel, says it supports the signing of California Assembly Bill 2663 into law, as it “effectively lowers the tax on DME when used as a diesel replacement or to blend with propane to the same rate as other alternative fuels.”
“AB 2663 levels the playing field for DME and removes a barrier to adoption for fleets seeking ways to reduce their carbon footprint,” says Rebecca Boudreaux, president and CEO of Oberon Fuels. “I want to thank Assemblymember Eduardo Garcia for championing this bill. A bipartisan and unanimous bill is a testament to his leadership.”
Oberon Fuels it is in the process of upgrading its plant in Brawley, California, from pilot to demonstration scale, partially funded by a $2.9 million grant from the California Energy Commission.
The plant is expected to produce 1.6 million gallons of DME from more than 5,500 metric tons of waste material when operating at full capacity. On its website, Oberon says waste materials it uses include biogas from dairy manure and food waste.
In 2020, Oberon announced a collaboration agreement with Netherlands-based SHV Energy, a global distributor of propane, and the sale of a 39 percent stake of Oberon shares to New Jersey-based Suburban Propane.
“This is a perfect example of the power of public-private partnerships to drive innovation, create jobs and have a positive impact on both human health and the overall environment,” says Oberon co-founder and chief operating officer Elliot Hicks. “We look forward to commercial production of renewable DME next year and working with our partners to increase adoption and use around the world.”