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Suburban Propane Partners to Acquire 39% Share in Oberon Fuels to Support Carbon Emission Reduction
Monday 21 September 2020

New Jersey, US-based propane and fuel oil distributor Suburban Propane Partners, L.P. (NYSE: SPH) has entered into an agreement to acquire a 39% stake in California-based Oberon Fuels, Inc. a development-stage renewable energy producer, to support development of solutions to reduce carbon emissions, the company said.

Terms of the transaction were not disclosed.

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 commercialising a rDME/propane blended product.

With recent grant funding from the California Energy Commission, Oberon is developing rDME for use as a blending agent with propane.

During 2021, Oberon is expected to begin production of rDME from pulp mill waste (with an annual production capacity estimated at 1.6m 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.

Proskauer Rose LLP served as counsel to Suburban Propane and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. served as counsel to Oberon.

Suburban Propane Partners, L.P., 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 1m customers through its 700 locations across 41 states.

Oberon Fuels is a development-stage producer of low carbon, renewable dimethyl ether transportation fuel, has been focussed on the research and development of a practical and affordable pathway to zero-emission transportation through its proprietary production process.
Date Published: 21/09/2020