Converting carbon dioxide (CO₂) into fuels is a promising technology to reduce greenhouse gas emissions and create sustainable energy sources. Several innovative companies are developing CO₂-to-fuel technologies, turning captured carbon into synthetic fuels like methanol, ethanol, or jet fuel. As climate initiatives accelerate, these companies poised to go public offer compelling investment opportunities in clean energy and carbon recycling.
Why invest in CO₂-to-fuel technology?
- Carbon recycling: Converts captured CO₂ into valuable fuels, reducing net emissions.
- Energy security: Produces drop-in fuels compatible with existing infrastructure.
- Growing policy support: Incentives and carbon pricing increase viability.
- Scalable solutions: Potential to decarbonize hard-to-abate sectors like aviation and shipping.
Notable CO₂-to-fuel companies planning IPOs or recent public listings
1. Twelve (formerly Opus 12) (private, IPO rumored)
- Develops electrochemical reactors that convert CO₂ into chemicals and fuels using renewable electricity.
- Partnerships with chemical companies and pilot projects underway.
2. Carbon Clean Solutions (private, IPO plans anticipated)
- Specializes in CO₂ capture technology with integrated conversion to fuels and chemicals.
- Focus on industrial-scale carbon recycling projects.
3. LanzaTech (private, SPAC and IPO discussions)
- Uses microbial fermentation to convert CO₂ and industrial emissions into ethanol and other biofuels.
- Engaged in commercial-scale projects globally.
4. Electrochaea (private, IPO expected)
- Develops biological methanation technology converting CO₂ and renewable hydrogen into methane.
- Targets power-to-gas and synthetic natural gas markets.
5. Prometheus Fuels (private)
- Focuses on converting CO₂ into gasoline and diesel using direct air capture and renewable energy.
- Plans for commercial scale-up and potential public offering.
6. C-Capture (private)
- Developing proprietary solvents and processes for CO₂ capture and conversion to fuels and chemicals.
Related publicly traded companies with CO₂ utilization exposure
- Linde plc (NYSE: LIN): Industrial gases and carbon capture services supporting CO₂-to-fuel processes.
- Air Products and Chemicals, Inc. (NYSE: APD): Supplies hydrogen and CO₂ handling infrastructure.
- ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX): Investing in carbon capture and utilization projects.
ETFs with clean energy and carbon tech exposure
- Global X CleanTech ETF (CTEC)
- iShares Global Clean Energy ETF (ICLN)
- KraneShares Global Carbon Strategy ETF (KRBN)
Investment considerations
- Technology validation: Commercial viability depends on scaling pilot projects.
- Renewable energy costs: Electrofuels rely on affordable clean electricity.
- Regulatory incentives: Carbon pricing and mandates affect profitability.
- Market adoption: Fuel standards and consumer acceptance influence uptake.
CO₂-to-fuel technology companies going public represent a cutting-edge investment theme aligned with decarbonization and circular economy goals. Investors should monitor firms with proven conversion processes, strategic partnerships, and clear pathways to commercialization for long-term growth potential.