What is Renewable DME?

Written on: February 23, 2026

Exploring a GHG-reducing biogas that can blend with propane and renewable propane.

Renewable liquid gases deserve a seat at the decarbonization table. Low-carbon fuels like conventional and renewable propane gas (rPG) allow homes and businesses to reduce their environmental footprint without costly equipment conversions or replacements. They also operate independently of utility grids, offering reliable energy access to rural areas.

Working alongside conventional propane and rPG is renewable dimethyl ether (rDME), a biogas with significant potential to reduce the carbon intensity of liquified petroleum gas. While rDME shows promise, it comes with limitations worth understanding.

What is rDME and how is It Produced?

Dimethyl ether is a synthetically produced, colorless gas used extensively in the chemical industry and as an aerosol propellant. At standard temperature and pressure, DME exists as a gas but can be liquefied under moderate pressure (similar to propane).

Renewable DME is produced from sustainable, organic waste streams including biomass, agricultural waste, municipal waste, dairy waste and landfill gas. According to Oberon Fuels, the first company to build a commercial-scale rDME plant in the U.S., rDME can also be produced from syngas or renewable methanol.

The production process converts these renewable feedstocks into a clean fuel that can be blended with propane or used on its own in modified equipment. Studies have shown that DME is non-toxic, non-carcinogenic and benign.

It’s worth noting that, although rDME can be blended with propane, it is not the same molecular composition, so there are limits on the percentage blend. In contrast, renewable propane is molecularly identical to conventional propane and can be blended at any ratio.

What Are the Advantages of rDME?

The primary advantage of rDME lies in its ability to dramatically reduce carbon intensity. When blended with propane, rDME can lower carbon intensity scores by up to 60%. Some rDME products can achieve a carbon intensity in net-negative territory, meaning they essentially remove more carbon from the atmosphere than they emit.

Renewable DME blends seamlessly with propane at percentages up to 20% without requiring changes to handling procedures or infrastructure. This compatibility allows the propane industry to leverage its existing distribution network.

Because rDME is produced domestically from waste materials, it supports energy independence and creates jobs in local communities.

Where Does rDME Research and Production Stand?

Major industry players are investing heavily in rDME research and production. The World Propane Association, the Propane Education & Research Council (PERC), Oberon Fuels and Suburban Propane are all advancing rDME technology and deployment.

Suburban Propane became the first company to offer propane blended with rDME in the U.S., partnering with Oberon Fuels to fuel vehicles in California since 2022. The World Liquid Gas Association estimates that by 2050, renewable DME and renewable propane could meet half the world’s demand for propane.

Despite this progress, several factors temper rDME’s potential. The fuel has a lower heating value of 68,930 Btu per gallon compared to propane’s 91,452 Btu per gallon, meaning more rDME is needed to produce the same amount of energy.

As noted earlier, current research also limits how much rDME can be safely blended with propane without requiring infrastructure modifications. Studies suggest blends of 5% to 10% work well with existing equipment, though some testing shows potential for blends up to 25%. The challenge lies in ensuring these blends don’t cause corrosion or compatibility issues with seals, pumps and valves designed for liquid petroleum gases.

The potential for rDME is remarkable, but realistic expectations matter. As research continues and production scales, rDME will play an increasingly important role in decarbonizing the propane industry.

Want to stay informed about the latest advances in low-carbon, renewable liquid gases? Join the Renewable Propane Alliance and be part of the conversation shaping our energy future.