Prometheus Fuels said on Monday it has cut the cost of capturing carbon dioxide from the air by more than 80 percent, opening the door for affordable synthetic fuels that could rival fossil fuel prices without subsidies.
Breakthrough in Direct Air Capture
The California-based startup stated that its direct air capture system now operates at less than $50 per ton, significantly below the industry range of $200 to $600. The sharp drop makes e-fuels commercially viable for power generation, transportation, and heavy industry.
The breakthrough is being demonstrated in a new 200-ton-per-year DAC unit under construction. The system captures carbon dioxide directly into water, then converts it into fuel using the company’s patented Faraday Reactor. This streamlined approach eliminates the need for purification, compression and other costly steps.
Global Race for Carbon Neutral Power
The announcement comes as governments and companies seek scalable, carbon-neutral power sources. Many subsidy-driven projects face growing pressure, while most carbon capture technologies remain too expensive.
Prometheus’ low-cost system offers liquid fuels made from solar energy, providing 24/7 carbon neutral power in any location.
“Low-cost DAC unlocks the best solar locations, far away from point sources of carbon dioxide,” said Rob McGinnis, founder and CEO, in a statement. “By combining this with our hydrocarbon electrolysis Faraday Reactor, we have made truly affordable e-fuels possible for the first time.”
New Business Model for E-Fuels
Unlike conventional approaches, Prometheus’ modular, off-grid system does not depend on smokestacks or bio-derived carbon. It can be deployed where renewable electricity is cheapest, and its fuels can be transported globally at low cost.
“This isn’t just a scientific breakthrough, it’s a whole new business model,” McGinnis added. “Ultra-low-cost DAC with modular electrochemical fuel production makes remote solar the cheapest new source of firm, dispatchable, carbon-neutral power.”
Independent Validation and Scaling Plans
Engineering firm Ramboll independently validated Prometheus’ costs and fuel economics in a detailed analysis. The company has already run the world’s only commercial-scale DAC prototype for more than four years, producing e-fuels at its Titan Forge Alpha pilot plant.
The new 200-ton system will build on this platform to serve demand from sectors such as AI computing, factories, aviation, shipping, and green steel. Prometheus said its fuels can also help stabilize electricity grids by powering peaker and baseload plants.
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Prometheus Becomes World’s 1st to Make Carbon-Neutral E-fuel From Air at Scale
