WHIPPANY, N.J., Sept. 17, 2020 /PRNewswire/ -- Suburban
Propane Partners, L.P. (NYSE: SPH), a nationwide distributor of
propane, fuel oil and related products and services, as well as a
marketer of natural gas and electricity, today announced a deal to
purchase a 39% stake in Oberon Fuels, Inc. ("Oberon") based in
San Diego, California. Oberon, a
development-stage producer of low carbon, renewable dimethyl ether
(rDME) transportation fuel, has been focused on the research and
development of a practical and affordable pathway to zero-emission
transportation through its proprietary production process. Oberon's
rDME fuel is a cost-effective, low-carbon, zero-soot alternative to
petroleum diesel. Pursuant to the agreements between the parties,
Suburban Propane has also committed to provide additional funding
to support continued development efforts to begin commercializing a
rDME/propane blended product.
"At Suburban Propane, we recognize the need to reduce the
nation's carbon footprint and improve overall air quality. The
current clean-burning attributes of propane are a positive
contributor to the goals of decarbonization, particularly when used
as a replacement for gasoline and diesel in the transportation
sector. Through our Go Green with
Suburban Propane initiative, we are committed to the
development of innovative solutions to further reduce the emissions
profile of propane and to creating a pathway to zero carbon
emissions," said Michael Stivala,
Suburban Propane President and Chief Executive Officer. "Our
investment in Oberon Fuels is perfectly aligned with our strategic
growth initiatives, and our commitment to being a pioneer in the
transition to a sustainable energy future. We are very excited to
partner with the team at Oberon Fuels to realize our joint vision
of bringing DME technology together with propane to dramatically
lower the carbon footprint."
With recent grant funding from the California Energy Commission,
Oberon is developing rDME for a novel use: a blending agent with
propane. Traditional clean-burning propane can offer immediate
opportunities to reduce carbon emissions in the transportation
sector compared to gasoline and ultra-low sulfur diesel. With an
estimated Carbon Intensity (CI) value of -278 according to the
California Air Resources Board, and similar handling and storage
properties as propane, rDME can be an ideal blending agent that can
reduce the carbon intensity of propane. Under the United
States Environmental Protection Agency's Renewable Fuel Standard,
rDME is eligible for renewable identification number ("RIN")
credits when produced from dairy biogas using the Oberon process.
During 2021, Oberon is expected to begin production of rDME from
pulp mill waste (with an annual production capacity estimated at
1.6 million gallons) at its demonstration facility in California's Imperial Valley. Suburban
Propane will have the exclusive rights to work with Oberon to
market and sell rDME and rDME/propane blends in the United States, Canada and Mexico.
In connection with the transaction, Oberon Fuels President,
Rebecca Boudreaux, Ph.D., has been
named President and Chief Executive Officer, taking over from
longtime investor and former CEO, Ruben S.
Martin III, who now owns an equal equity stake in Oberon
with Suburban Propane. Mr. Martin is a veteran of the midstream oil
and gas industry and transportation space, serving as President of
Martin Resource Management Company since 1981 and its publicly
traded affiliate, Martin Midstream Partners, L.P. Oberon's
co-founder and longtime Chief Operating Officer, Elliot Hicks, will continue leading Oberon's
operational and engineering efforts, and the management of Oberon
will retain their current ownership interests in Oberon.
"Suburban Propane is making a bold statement that innovative
approaches can drive sustainability across the industry," said
Rebecca Boudreaux, Ph.D., Oberon
Fuels President and Chief Executive Officer. "This is an
opportunity for two molecules – DME and propane – to come together
and provide the world with a cost-effective, clean-burning fuel
that offers a pathway to carbon neutrality. We could not be happier
to be working with Suburban Propane to bring this technology to the
market and meet the increasing demands for lower emissions."
Proskauer Rose LLP served as counsel to Suburban Propane and
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. served as
counsel to Oberon.
For more information, please visit
www.suburbanpropane.com/oberon/
About Suburban Propane
Suburban Propane Partners, L.P.
(SPH), is a nationwide distributor of propane, fuel oil and related
products and services, as well as a marketer of natural gas and
electricity, servicing over 1 million customers through its 700
locations across 41 states. The company proudly celebrated 90 years
of innovation, growth and quality service in 2018. The brand is
currently focused on three core elements including Suburban
Commitment - showcasing the company's 90+ year legacy of
flexibility, reliability and dependability, Suburban Cares -
highlighting dedication to serving local communities across the
nation and Go Green with Suburban
Propane - promoting the affordable, clean burning and versatile
nature of propane as a bridge to a green energy future. Suburban
Propane is a New York Stock Exchange listed limited partnership
headquartered in Whippany, NJ. For
additional information on Suburban Propane, please visit
http://www.suburbanpropane.com.
About Oberon Fuels
California-based Oberon Fuels is on a mission
to decarbonize transportation by converting biogas and industrial
waste streams into high-performing, high-value molecules. Using its
proprietary small-scale process, Oberon Fuels focuses on the
production of renewable dimethyl ether (rDME) from waste and/or
renewable resources. Oberon Fuels' pilot plant in
Brawley, California, produced the
first fuel-grade DME in North
America, which has been used by several major international
OEMs for vehicle demonstrations around the world. More information
about Oberon Fuels is available at www.oberonfuels.com.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/suburban-propane-partners-lp-announces-deal-to-acquire-39-stake-in-oberon-fuels-and-additional-investments-to-support-the-ongoing-development-of-innovative-solutions-to-reduce-carbon-emissions-301133443.html
SOURCE Suburban Propane Partners, L.P.