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This company claims it can make fuel from air, water
18 Mar 2026

Carbonology, a Shanghai-based start-up, has claimed that it can produce synthetic fuel using just air, water, and renewable energy.

The announcement comes amid global oil market uncertainties due to rising tensions in the Middle East.

The firm says it has developed a method to capture carbon dioxide from the atmosphere and convert it into petrol, diesel, and jet fuel among other products.

Competing with fossil fuels
Sustainable approach

The process developed by Carbonology uses solar and wind energy, making it a cleaner alternative to traditional fossil fuels.

The firm was co-founded in 2024 by a former Tesla executive.

It claims that it has lowered production costs enough to compete with current fuel prices and is now gearing up for large-scale production in China.

However, detailed technical information about the process has not been shared yet.

Reducing dependence on imported crude oil
Strategic shift

The development by Carbonology is part of a wider effort by China to cut down on imported crude oil.

The country currently imports over 70% of its oil, a lot of it from the Middle East.

Ongoing conflicts in the region have led to supply disruptions and price volatility, making alternative energy sources even more important.

Experts skeptical about viability of synthetic fuels
Skepticism

Despite Carbonology's claims, experts remain skeptical about the cost and scalability of synthetic fuels.

While technologies like direct air capture have improved in recent years, most of the captured carbon has been stored underground instead of being converted into fuel.

Studies suggest that synthetic fuels are still expensive to produce and require large amounts of energy, making them less viable for widespread adoption at this stage.