California approves DME as vehicle fuel

Oberon Fuels Inc got a big boost when California approved dimethyl ether (DME) as an alternative vehicle fuel in the state. This latest approval builds on earlier approvals and ongoing work by other regulatory bodies, including the US Environmental Protection Agency, the California Air Resources Board, and ASTM International, and will help accelerate commercial adoption of this low carbon fuel.

"The use of fuels like DME will reduce greenhouse gas (GHG) emissions, improve air quality and lead to a positive impact on California and the environment," said Kristin Macey, director of the Division of Measurement Standards at the California Department of Food and Agriculture, which issued the latest approval of DME fuel.

DME is a clean-burning, non-toxic fuel that can be derived from renewable sources. Its high cetane number and quiet combustion, as well as its inexpensive propane-like fueling system, make it an excellent, inexpensive diesel alternative.

"The State of California's approval builds upon the growing body of certifications that demonstrate DME is a low carbon fuel that meets both industry standards for performance and environmental standards for compliance," said Rebecca Boudreaux, president of Oberon Fuels. "These approvals are a key step in increasing confidence among distributors, engine manufacturers and fleet owners that DME is ready for commercial markets, which will benefit Oberon as we build out a global supply of DME fuel."

Susan Alt, Volvo Group North America's senior vice-president of public affairs, which has been collaborating with Oberon on commercial vehicle demonstrations, added: "This certification is a major step forward in developing the market for DME, especially for California-based heavy-duty fleets. Volvo Trucks is continuing to invest in DME because it delivers diesel-like performance with propane-like handling and will provide a faster ROI for truck customers than other alternative fuels. Each certification increases their confidence that the fuel is good for trucks and the environment."

The State of California's legalization of DME for use as vehicle fuel is the latest milestone for the growing DME industry. Earlier this month, the California Air Resources Board published their Multimedia Assessment Tier 1 report on DME, which evaluates publicly available data on the effect of DME on air, soil, and water.

Last August, the EPA approved biogas-based DME for inclusion under the Renewable Fuel Standard and made it eligible for Renewable Identification Numbers (RINs) credits based on EPA findings that the fuel achieves a 68 percent reduction in greenhouse gases.

In February 2014, ASTM International, a globally recognized organization that develops technical standards, released a specification for DME as a fuel. ASTM D7901 provides guidance for fuel producers, engine and component suppliers, and infrastructure developers on DME purity, testing, safety, and handling.

Using its proprietary small-scale process, Oberon Fuels makes DME, a clean-burning diesel alternative, and methanol from methane and carbon dioxide. In 2013, Oberon Fuels' pilot plant in Brawley CA produced the first fuel-grade DME in North America, fuel which is currently being used by Volvo Trucks, a division of The Volvo Group, in its commercial demonstrations of DME-powered, heavy-duty trucks.

To learn more about Oberon Fuels, visit www.oberonfuels.com.

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