TECHNOLOGY

The developing DME market:

What it means for LPG
As th e re n e w a b le fu el
builds m o m e n tu m in th e
U.S., p ro p a n e in d u stry
leaders and com pan ies
are considering roles
th e y can play

BY BRIAN R IC H ESSO N | EDITOR IN CHIEF

b ric h e s s o n @ n o rth c o a s tm e d ia .n e t

evelopments with a renew­

D
able fuel similar to propane
have LP gas industry lead­
ers weighing the benefits of
a partnership and consider­
ing new opportunities for
their businesses.
Dimethyl ether (DME) has been discussed
in propane industry circles for years, and it
was the topic of a renewable fuels article in the
January 2010 edition of L P G a s .
But DME made progress last year on two
particular fronts: In February, ASTM Inter­
national, a globally recognized organization
that develops technical standards, released a
specification for DME as a fuel. Then in Au­
gust, Oberon Fuels, a California company
that m anufactures DME, received U.S. En­
vironmental Protection Agency approval for
the fuel’s inclusion under the Renewable Fuel
Standard.
W hat does it mean?
DME appears to have momentum as a re­
newable fuel that can help displace diesel in
m otor fuel applications. And because DME
exhibits propane-like properties, officials
representing both fuels believe each side can
benefit.
“There is no silver bullet” when it comes to
O b e ro n Fuels' p la n t in B raw ley, Calif., p roduces D M E d ire c tly fro m m ethano l, alternative fuels, says Brittany Applestein Syz,

36 | LPGas J a n u a r y 2 0 1 5 www.LPGasmagazine.com
 TECHNOLOGY

networks, industry officials say. It’s already being done inter­

nationally. Ultimately propane industry leaders view DME
blending as a way for propane to gain renewable fuel status
and possible future tax incentives.

Defining DME
More than 5 m illion tons of DME are produced annually
worldwide from various feedstocks, mostly through metha­
nol dehydration, the International DME Association reports.
Feedstocks include renewable materials (biomass, waste, wood
and agricultural products) and fossil fuels (natural gas and

Visitors g e t a first-h an d lo o k a t th e D M E p ro d u c tio n facility.

Photos courtesy ofOberon Fuels

vice president of business development and general counsel for

Oberon Fuels. “Being able to bring another clean-burning fuel
to market only provides more choice for the customer. There
is room for all of these fuels.”
The ASTM subcommittee on LP gases formed a task force
to develop the specification for DME, and propane industry
leaders were part of the process. ASTM D7901, the specifica­
tion’s official designation, provides guidance for fuel produc­
ers, engine and component suppliers, and infrastructure de­
velopers on DME purity, testing, safety, and handling.
Over time, the task force plans for the ASTM specification
to also cover the blending of DME with propane.
Blending the two fuels is one area that intrigues the indus­
tries, as blending up to 20 percent DME with propane usu­
ally requires no modifications to equipment or distribution
These tw o 3 0 ,0 0 0 -g a llo n D M E sto rage tan ks have a sim ilar loo k
and fee l to th a t o f p ro p a n e tan ks.

coal). China is a major producer of DME from coal.

DME is popular in domestic cooking and heating when
blended with LP gas, particularly in developing countries
seeking benefits in price, economics, demand for clean fuels
and energy security. DME is also becoming a promising alter­
native vehicle fuel.
Oberon Fuels calls DME a simple fuel. It’s clean and col­
orless, and easy to liquefy under moderate pressure (75 psi)
and transport, much like propane. Those qualities are driving
Oberon’s push to use DME as an engine fuel to displace diesel,
particularly in heavy-duty applications.
“DME performs like diesel; it has the power and torque of
diesel, but it handles like propane,” Applestein Syz says.
Based in San Diego, Oberon Fuels was formed in 2010. It
has one plant in Brawley, Calif., capable of producing 4,500
gallons of DME per day. Production commences when an
OEM needs DME for testing, she adds. Oberon has been
Continued on page 38

w w w .L P G a s m a g a z in e .c o m J a n u a r y 2 0 1 5 LPGas | 3 7
 TECHNOLOGY

Continuedfrom page 37
working with Volvo in N orth America
on DME-powered test vehicles.
Oberon Fuels also touts the benefits
of stable pricing with DME because it’s
not tied to crude oil pricing. Declining
to provide a specific price, the company
says DME is com petitive w ith diesel
pricing.
M o n e y S a v in g
Because DME and propane are simi­
lar, Oberon Fuels sees an opportunity
to partner with the propane industry,
using its infrastructure and distribution
network to reach customers and, in turn,
provide additional business for propane
companies.
“Propane and DME are used for dif­
ferent applications,” Applestein Syz says.
In s u ra n c e O p tio n s
“DME is used in heavy-duty hauling -
Class 8, 13-liter trucks pulling heavy
loads. It can get you up the hills. This is
where DME excels.”
O nly m inor m odifications to the
diesel engine are needed for it to run
on DME, m aking construction, m in­
ing and agricultural applications target
markets, as well, Applestein Syz says.
Some companies already supplying
equipment to the propane industry are
seeing an opportunity with DME. Para-
four Innovations, which manufactures
propane autogas refueling dispensers,
has been working with Oberon Fuels,

JAY
the In ternational DME A ssociation
and Volvo to demonstrate its DME dis­
penser. Red Seal Measurement and Gas

JOHNSTON
Equipment Co. also are showing an in­
terest in DME.
“We’re seeing real buy-in from the
propane industry,” Applestein Syz says.
c/lie oa/etu ( eadei* Oberon Fuels says it will continue to
reach out to propane industry players as
it works to execute its business model -
the deployment of small-scale, modular
DME production plants to coincide with
In s u ra n c e A g e n t growth in regional markets.

Developing standards
D y s te W illia m s A g e n c y One of the latest discussion topics be­
tween DME and propane industry lead­
w w w .D y s te W illia m s .c o m ers centers on storage standards, says
Bruce Swiecicki, senior technical advis­
er, regulatory and technical services, at

You deserve a the National Propane Gas Association.

While ASME containers and Depart­
ment of Transportation cylinders could

second opinion. be used to store and ship DME, no code

exists that references bulk storage of the
product.
C a ll a b o u t y o u r o p tio n s to d a y . “In terms of storing DME, we deter­
mined it is not within the scope of NFPA

952 935-5350
58; it is w ithin the scope of NFPA 55,
which is compressed gases,” Swiecicki
- says. “But w ithin that NFPA 55 stan­
dard, there is not much to say about bulk
storage of compressed gases.”
The potential odorization of DME is
In s u ra n c e c lie n ts re c e iv e a s u b s c rip tio n also being discussed, he adds.
to The S a fe ty L e a d e r N e w s le t t e r fo r FREE. Swiecicki envisions propane and
DME stored in separate containers and
mixed at a point along the distribution

3 8 | LPG as J a n u a r y 2 0 1 5 w w w .L P G a s m a g a z in e .c o m
 T EC HN OL O GY

Want to learn more about

dimethyl ether (DME)? Visit:
■ International DME Association: www.aboutdme.org
■ Oberon Fuels: www.oberonfuels.com

customers and fulfilling Oberon Fuels’ vision of DME com­

O b e r o n F u e ls P r e s id e n t R e b e c c a B o u d r e a u x le a d s a to u r .
chain, possibly in the bobtail at the bulk plant - whatever is
most advantageous to the propane marketer and for the end-
use application.
“How it would look in the handling of this material is simi­
lar to what we see going on with propane,” Swiecicki says.
Blending aside, propane marketers could also distribute
straight DME, potentially making it another service to offer
panies partnering with the LP gas industry.
“We see this as an opportunity to approach it like we do
with autogas,” says Jessie Johnson, vice president of sales and
marketing at Blossman Gas, parent company of propane fleet
vehicle solutions provider Alliance AutoGas.
“We’re a distribution company, and that same thing could
apply with DME,” Johnson adds. “There’s going to be a role for
the propane industry to become a distribution arm for DME
because it’s compatible with propane.”
DME has “wonderful characteristics” as an engine fuel,
which piqued Blossman Gas’ interest, Johnson says. He views
DME as a propane industry partner to target diesel engine
market applications.
“It’s going to take a few years yet to fully develop,” Johnson
says. “It’s in its infancy, but a lot of companies like Oberon are
gearing up to take advantage.” LPG

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