SOURCE: Oberon Fuels

Oberon Fuels

February 26, 2015 09:03 ET

Oberon Fuels Poised for Growth as State of California Approves Dimethyl Ether (DME) for Legal Use as a Vehicle Fuel

Another Milestone for the Introduction of a New, Low Carbon Fuel in the United States

SAN DIEGO, CA--(Marketwired - Feb 26, 2015) - Oberon Fuels, Inc. ("Oberon"), the first company to produce fuel-grade dimethyl ether ("DME") in North America, announced today that DME is now approved for use as vehicle fuel in the state of California. 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, Ph.D., 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."

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.

"This certification is a major step forward in developing the market for DME, especially for California-based heavy-duty fleets," said Susan Alt, Volvo Group North America's senior vice president of public affairs, which has been collaborating with Oberon on commercial vehicle demonstrations. "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."

About Oberon Fuels
California-based Oberon Fuels monetizes biogas and other hydrocarbon rich waste streams by converting such feedstock into higher valued commodities. Using its proprietary small-scale process, Oberon makes DME, a clean-burning diesel alternative, and methanol from methane and carbon dioxide. In 2013, Oberon Fuels' pilot plant in Brawley, California produced the first fuel-grade DME in North America, 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.

About The Volvo Group
The Volvo Group is one of the world's leading manufacturers of trucks, buses, construction equipment, and marine and industrial engines. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 110,000 people, has production facilities in 19 countries and sells its products in more than 190 markets. See more at: www.volvogroup.com.

Contact Information