A method of producing a fuel additive includes: passing a raffinate stream comprising C4 hydrocarbons through a hydrogenation unit, forming a first process stream; passing the first process stream through an extractive distillation unit, forming a C4 olefin stream; passing the C4 olefin stream through a stripper column, forming a purified C4 olefin stream; and forming the fuel additive by passing the purified C4 olefin stream through a hydration unit.