Unlimited petrol? Chinese firm claims it can produce fuel from air and water

2026.03.17 10:20 Employees inspect equipment at a petrochemical refinery in northeast China’s Heilongjiang province. China is exploring alternatives to fossil fuels as part of an effort to reduce its reliance on imported crude oil. Photo: VCG A Shanghai-based start-up claims to have mastered a technique for producing synthetic petroleum at low cost from air and water, as China intensifies efforts to develop alternatives to traditional fossil fuels amid the US-Israel war against Iran. Carbonology announced it had created a process for converting carbon dioxide extracted from air and water into artificial fuel using solar and wind energy, Chinese media outlet Cailianshe reported on Tuesday. The company – co-founded by a former vice-president at Tesla in 2024 – said it had achieved sufficient cost reductions to sell synthetic petrol, diesel, jet fuel and naphtha at market-competitive prices, according to the report. Now, the firm is “preparing” to roll out “large-scale production capacity in China”, the report added. During a phone interview, a member of staff at Carbonology confirmed the report was accurate but declined to provide further details. Carbonology is among a wave of Chinese firms exploring the potential for technologies that capture carbon dioxide from the air – an industry that is maturing but still faces scepticism from some experts. Direct air capture (DAC) techniques have moved from laboratory curiosity to reality over the past decade, but most of the captured greenhouse gases have so far ended up being stored underground rather than converted to fuel. The Chinese company’s announcement also comes as intensifying military conflicts in the Persian Gulf jolt global energy markets, with shipping disruptions, attacks on infrastructure and production cuts leading to severe price volatility. China – which relies on imports for more than 70 per cent of its crude oil, much of it sourced from the Middle East – has been investing heavily in exploring alternative

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