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SoCalGas, Oberon Fuels partner to produce Dimethyl Ether from natural gas for transportation fuel; first such commercial facility in US

Southern California Gas Co. (SoCalGas) and Oberon Fuels, a San Diego-based low-emission alternative fuels company, announced a joint research and development agreement to design and construct the first commercial facility in the United States to produce Dimethyl Ether (DME) from natural gas for use as a transportation fuel.

The planned demonstration facility will use Oberon’s proprietary catalytic technology and process which will mix natural gas with carbon dioxide to produce DME in small-scale, skid-mounted modular units that will produce 3,000 to 6,000 gallons of DME per day.

(Oberon envisions that the modular design can be deployed to remote stranded gas locations that would otherwise be difficult to harvest or to industrial operations where it can utilize waste CO2 streams to increase output. Oberon also can use biomethane—landfill natural gas or waste (agricultural) natural gas&madsh;in its process.)

The facility will be located in Southern California and produce the DME, which can be used as an alternative to diesel and propane, as well as for a variety of non-transportation uses.

SoCalGas is committed to supporting the development and deployment of clean alternative transportation fuels. Fifty-five billion gallons of diesel fuel are consumed annually in the United States, and the trucking industry is looking for cost-effective solutions that meet the rigorous air quality standards and support the common goal of cleaner air. Using natural gas as a feedstock for DME is just another environmentally beneficial use for natural gas.

—Hal D. Snyder, vice president of customer solutions for SoCalGas

DME is a particularly attractive fuel because it generates almost no particulate matter and produces ultra-low levels of smog-causing nitrogen oxides, or NOx. DME burns cleaner than diesel while providing improved engine performance. With handling characteristics similar to propane, DME offers the potential to provide an alternative fuel solution that is cost effective, environmentally friendly, and operationally easy to adopt.

Oberon is working with a variety of policy leaders and state agencies to help ensure that DME becomes part of California’s clean alternative transportation fuel portfolio. The joint demonstration project is first targeting the “return-to-base” trucking segment. In return-to-base applications, the trucks go out in the morning, make their deliveries and then return to the same location for re-fueling and re-stocking.

Today, DME is most widely used as a gas aerosol propellant in consumer products. Research on DME as an alternative fuel for diesel engines began in the 1990s, and worldwide production has increased significantly over the last decade. Using DME primarily as a blendstock for propane gas, China has driven the growth in demand and prompted large plants to be built throughout Asia and the Middle East.

Several truck manufacturers (e.g., Volvo, Nissan, and Shanghai Automotive) have been testing new DME trucks for several years with excellent results, and existing diesel trucks can be retrofitted for DME with only modest modifications.


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