Carbon dioxide gets new life as it's recycled into gasoline

— -- Carbon dioxide, the chief greenhouse gas, is public enemy No. 1 to environmentalists. CO2 emissions from vehicle tailpipes have helped spawn a multibillion-dollar ethanol industry as the nation fights global warming and strives to import less foreign oil.

But at least a handful of companies and scientists are turning that battle on its head: They're finding ways to recycle CO2 and turn it back into gasoline and other transportation fuels.

While their projects are in the early stages, researchers say they've tested their technologies in the lab and are poised to unveil prototypes that could lead to commercial rollouts in as little as two years. If successful, such initiatives could reduce dependence on carbon-spewing, petroleum-based products, as well as renewable fuels such as corn ethanol that compete with food supplies.

"Having a homegrown alternative to (oil) is an attractive proposition," says Jim Miller, a scientist at Sandia National Laboratories who's working on a CO2-to-fuel project.

Scientists demonstrated years ago that CO2 can be converted into liquid fuel by breaking it apart and combining the carbon atom with hydrogen. Those are the basic building blocks of hydrocarbons, such as oil and coal, and feed stocks such as corn and sugar cane.

The problem: CO2 is very stable and can be split only under high temperature and pressure. That requires a lot of energy, which drives up costs. The start-ups are devising ways to unravel CO2 using less energy.

Turbocharging their efforts: oil prices that were skyrocketing until recently, and a push in Congress to require utilities, oil refiners and others to pay fees for each ton of CO2 they spew. Under legislation anticipated by next year, the industries would eventually have to curtail their emissions.

"There's just plentiful CO2, and someone's going to be willing to supply it to us," says Derek McLeish, CEO of Carbon Sciences, one of the start-ups.

Running ahead

Carbon Sciences is furthest along in the CO2-to-fuels quest. McLeish founded the company in 2006 as Zingerang, a mobile communications provider. But faced with a crowded wireless marketplace in 2007, he and other investors pivoted sharply from communications to carbon. They also changed the company's name, went public and raised $2.5 million.