While Tesla Was Busy Selling EVs, a Company Came up With a Different Approach: Fuel Without Petroleum

For decades, clean energy innovation has chased two parallel goals: decarbonisation and practicality. One often comes at the expense of the other. Battery-electric cars reduce emissions, yes. But their infrastructure demands and range limitations still frustrate users outside ideal conditions.

There’s also the matter of time. Transitions on a global scale rarely move quickly, especially when billions of vehicles and trillions in infrastructure stand in the way. Fossil fuels are widely acknowledged as unsustainable. Still, they’re deeply embedded in everything from transport logistics to emergency power systems.

So when a small machine appeared on a rooftop in Manhattan last spring, producing gasoline from the open air, it prompted more curiosity than fanfare. It looked like a high-end appliance, not a breakthrough. But the implications could be significant.

Modular Fuel Synthesis From Air, Water and Electricity

The company behind the machine, Aircela, is a New York-based startup founded in 2019. Its technology merges direct air capture of carbon dioxide with on-site fuel synthesis. Using only ambient CO₂, hydrogen extracted from water, and renewable electricity, the machine produces liquid gasoline suitable for any combustion engine.

This isn’t a theoretical prototype. At the public demonstration in May 2025, held on a rooftop in the city’s Garment District, the device created usable petrol on-site and in real time. It captured CO₂ directly from the air, then combined it with hydrogen through a synthetic fuel process similar to Fischer-Tropsch synthesis but adapted for compact use.

The fuel it produces contains no sulphur, no ethanol, and doesn’t require engine adjustments or changes to refuelling systems. In essence, it behaves like gasoline because, chemically, it is.

Initial applications are likely to target off-grid operations, remote locations, and industrial sites where fuel transport is inefficient or carbon-intensive. The company has not published cost or performance figures, though it describes its model as distributed and modular.

This stands apart from large-scale e-fuel plants, which require significant capital investment and centralised production. Aircela’s aim is more local: make clean fuel where it’s needed, without relying on pipelines, tankers or refineries.

A Shifting Energy Landscape With Familiar Players

Aircela’s backers include a mix of climate-focused investors and traditional industry figures. Maersk Growth, the investment arm of A.P. Moller–Maersk, sees potential in the system for decarbonising long-haul maritime shipping. Other early supporters include Chris Larsen, co-founder of Ripple Labs, and Jeff Ubben, an investor and ExxonMobil board member known for his interest in sustainable energy transitions.

“We invested in Aircela because of their innovative approach to production of low-emission fuels based on direct air capture,” said Morten Bo Christiansen, Head of Energy Transition at Maersk, in a statement released by the company. “With the first prototype working, we have seen an important step towards that goal.”

The debut was attended by New York City Councilmember Erik Bottcher and New York State Energy Chairman Richard Kauffman. Aircela says limited commercial deployments are expected before the end of the year.

Public interest in synthetic fuels has grown steadily, particularly in sectors that remain difficult to electrify. Aviation, shipping and heavy industry continue to seek alternatives that offer high energy density and logistical compatibility with existing systems.

Europe has taken more concrete steps than the United States. The European Union’s Fit for 55 climate policy allows synthetic fuels to contribute to aviation emissions targets. No equivalent framework exists in the US, where policy and incentives remain focused on electrification.

Energy Intensity, Emissions and Uncertainty

The machine’s output is billed as carbon-neutral gasoline, though this depends on several conditions being met. If powered by solar or wind energy, and if hydrogen is produced via green electrolysis, the net lifecycle emissions could approach zero. But if the system relies on fossil-powered grids, its climate impact is reduced considerably.

Independent third-party assessments have not yet been published. Aircela has released no detailed figures on fuel yield, energy efficiency, or operational cost. Public demonstrations show feasibility, not necessarily scalability.

Synthetic fuel production is energy-intensive. The International Energy Agency estimates that hydrogen electrolysis requires roughly 50 to 55 kilowatt-hours per kilogram. Once CO₂ capture and fuel synthesis are added, total energy input increases significantly. This makes the technology less viable in areas without abundant low-cost renewables.

Still, decentralised production could offer resilience advantages. In disaster zones, military outposts or isolated communities, fuel independence remains a strategic asset. Whether synthetic petrol can compete with diesel generators or long-range batteries depends on deployment cost and reliability.

Compatibility as an Asset in the Transition

Globally, more than 1.4 billion internal combustion vehicles are still on the road, according to the International Energy Agency. Replacing them with electric vehicles will take time, money and policy coordination—factors not evenly distributed across countries or regions.

By producing fuel that works with existing fleets, Aircela’s system avoids many of the obstacles facing EV infrastructure rollouts. No chargers, no new parts, no training. It simply fills a tank.

That isn’t a long-term fix for fossil reliance, but it may serve as a bridge. Technologies that reduce emissions without requiring mass behavioural or industrial change can help close short- and medium-term gaps in national energy strategies.