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Iso-butane [(CH3)3CH] can be isolated from the petroleum C4 fraction or from natural gas by extraction and distillation. There are two major uses of iso-butane. One is dehydrogenation to isobutylene followed by conversion of the isobutylene to the gasoline additive methyl t-butyl ether (MTBE). However, current environmental issues may ban this gasoline additive. Iso-butane is also oxidized to the hydroperoxide and then reacted with propylene to give propylene oxide and t-butyl alcohol. The t-butyl alcohol can be used as a gasoline additive, or dehydrate to iso-butylene.