Shanghai-based startup Carbonology says it can convert carbon dioxide from ambient air and water into petroleum products using solar and wind power, and that recent cost cuts let it sell synthetic petrol, diesel, jet fuel, and naphtha at prices competitive with conventional fuels, as it prepares to scale up with large industrial plants in China, according to the South China Morning Post.
The announcement comes as China is intensifying efforts to develop alternatives to traditional fossil fuel, a push intensified with the current disruptions to the global oil supply chain.
The company, co-founded in 2024 by a former Tesla vice-president, frames its approach as Direct Air Capture. It describes a closed-loop pathway that turns captured greenhouse gases into artificial fuel rather than sending them to storage. It says falling costs now make this viable, with renewable electricity powering the conversion of extracted carbon into liquid hydrocarbons for transport and industrial uses.
No external validation
The public unveiling followed internal validation but preceded any independent technical verification. A staff member confirmed the accuracy of the company’s claims in a phone interview with South China Morning Post, noting that outside verification was not yet available, and declined detailed technical disclosures.
Carbonology seeks to move beyond lab-scale demonstrations toward larger commercial throughput. The company reportedly opened a research and development center in Shanghai in January and launched a production line for synthetic jet fuel. By targeting jet fuel, it is engaging a sector that is difficult to replace at scale, where synthetic options have drawn interest for blending and potential lifecycle benefits.