How can CO2 be used as a feedstock in manufacturing?

COâ‚‚ can be used as a feedstock in manufacturing by converting it into carbon monoxide (CO) or syngas, reactive carbon-containing molecules that serve as building blocks for chemicals, fuels, and materials. The conversion replaces fossil-derived inputs, closing the carbon loop at the point of industrial emission. The sections below unpack which industries already do this, how the conversion works, and why economics depend heavily on energy efficiency.

What industries already use CO2 as a manufacturing feedstock?

Steel, chemicals, petrochemicals, and synthetic fuel production are the primary industries currently using COâ‚‚ as a manufacturing feedstock. In each case, COâ‚‚-rich off-gases or captured emissions are converted into carbon monoxide or syngas, which then re-enter the production process as reactive carbon inputs, replacing coal, natural gas, or fossil-derived synthesis gas.

In steelmaking, COâ‚‚ emitted from blast furnaces can be recycled back into carbon monoxide and used as a reducing agent to convert iron ore into iron, a role traditionally filled by coke. This creates a circular carbon loop within the steel plant itself, cutting coal consumption without requiring a wholesale redesign of existing assets.

In the chemical and petrochemical sectors, carbon monoxide is a critical feedstock for producing acetic acid, polycarbonates, and a range of other industrial chemicals. Manufacturers that currently source CO from fossil-based steam methane reforming are increasingly evaluating COâ‚‚-derived alternatives to reduce both their carbon footprint and their exposure to volatile fossil feedstock prices.

Synthetic fuel and e-fuel producers represent a fast-growing application. Syngas, a mixture of CO and hydrogen, produced from COâ‚‚ and methane serves as the precursor for e-methanol, Sustainable Aviation Fuel (SAF), and other drop-in fuels. The biogas-to-syngas route is particularly relevant here, as it allows producers to work with biogenic carbon sources without requiring external hydrogen supply.

Across all these verticals, the common thread is industrial COâ‚‚ recycling: capturing carbon at the point of emission and reintroducing it into the value chain rather than releasing it into the atmosphere or burying it underground. You can explore how electrified CO production serves these sectors in practice.

How is CO2 converted into usable industrial feedstock?

COâ‚‚ is converted into usable industrial feedstock by breaking the bond between carbon and oxygen atoms, producing carbon monoxide (CO) or, when combined with methane, syngas. Several conversion technologies exist, but plasma-based electrified conversion has emerged as one of the most energy-efficient and industrially scalable approaches currently available.

Plasma-based COâ‚‚ conversion

Plasma conversion uses high-energy electrical discharge to selectively activate COâ‚‚ molecules, splitting them into CO and oxygen without producing unwanted byproducts such as carbon black. The process operates at ambient temperatures, unlike thermal methods that require extreme heat, and can be powered entirely by renewable electricity. D-CRBN’s patented Plasma ARCâ„¢ technology, developed from over a decade of reactor research at the University of Antwerp’s PLASMANT group, achieves a 90.5% COâ‚‚ conversion rate in a single pass at an energy requirement of 1,100 kWh per tonne of COâ‚‚. The reactor can also handle diluted COâ‚‚ streams containing up to 50% nitrogen, making it compatible with a wide range of industrial capture processes.

Dry reforming for syngas production

When syngas is the target output, COâ‚‚ is combined with methane in a process called dry reforming, producing a mixture of CO and hydrogen. This route is particularly relevant for biogas upgrading and for industries that want to produce synthetic fuels or chemicals without relying on fossil-derived hydrogen. D-CRBN’s electrified syngas production applies plasma technology to this reaction, enabling on-site syngas generation from COâ‚‚ and methane streams that would otherwise be flared or vented.

Both routes share a key design principle: the conversion happens on-site, integrating directly into existing infrastructure. The modular reactor systems are delivered as plug-and-play units: no plant redesign, no write-offs on existing assets. Learn more about the underlying science on the D-CRBN technology page.

What products can be made from CO2-derived feedstock?

COâ‚‚-derived feedstock, primarily carbon monoxide and syngas, can be used to manufacture a broad range of industrial products, including chemicals, synthetic fuels, polymers, and reducing agents for metallurgy. The specific product depends on whether the output is pure CO, a CO/hydrogen syngas blend, or a further-processed derivative.

Carbon monoxide is a direct feedstock for acetic acid, polycarbonates, and other base chemicals. In steelmaking, it functions as a reducing agent in blast furnaces, replacing coke.
Syngas (CO + Hâ‚‚) is the precursor for e-methanol, Fischer-Tropsch fuels, Sustainable Aviation Fuel (SAF), and synthetic natural gas.
Polymers and plastics can be produced using CO-based chemistry, replacing fossil-derived monomers with circular carbon building blocks.
E-fuels produced via the biogas-to-syngas route allow fuel producers to supply drop-in alternatives to conventional aviation and maritime fuels without external hydrogen.

The breadth of downstream applications is one reason COâ‚‚ recycling has attracted serious industrial interest. Rather than treating COâ‚‚ as a waste stream requiring disposal, manufacturers can treat it as a carbon source, one that feeds directly into existing production chemistries with minimal process modification.

What’s the difference between CCU and CCS for manufacturers?

Carbon Capture and Utilization (CCU) converts captured COâ‚‚ into usable products, while Carbon Capture and Storage (CCS) permanently sequesters COâ‚‚ underground or in geological formations. For manufacturers, the critical difference is economic: CCU generates a product with market value, while CCS is a cost center with no revenue return.

CCS requires significant infrastructure, pipelines, injection wells, long-term monitoring, and offers no recovery of the carbon investment. It also carries long-term liability questions around geological storage integrity. For industrial operators under pressure to decarbonize while remaining cost-competitive, CCS is often a difficult business case to close.

CCU, by contrast, transforms COâ‚‚ from a liability into a feedstock. The captured carbon re-enters the production cycle as CO or syngas, generating value that offsets or exceeds the cost of conversion. This circular model is particularly compelling for hard-to-abate industries where direct emissions reduction is technically constrained: the carbon is not eliminated from the process, but it is no longer a net atmospheric emission because it is immediately reused.

The distinction also matters for regulatory accounting. Under the EU Emissions Trading System (ETS), COâ‚‚ that is captured and utilized within a production process can reduce a facility’s net reportable emissions, lowering the volume of allowances that must be purchased. CCU therefore delivers both an operational benefit (new feedstock) and a compliance benefit (reduced ETS exposure), a combination that CCS cannot offer. If you want to explore this approach for your facility, electrifying your feedstock supply is a practical starting point.

Why is energy efficiency critical for CO2 feedstock economics?

Energy efficiency is the single most important factor determining whether COâ‚‚-derived feedstock can compete on price with fossil-based alternatives. If the electricity consumed per tonne of COâ‚‚ converted is too high, the cost of the resulting CO or syngas exceeds the market price of conventionally produced equivalents, and no industrial buyer will pay a sustainability premium at scale.

This is not a theoretical concern. Conventional CO production via steam methane reforming is a mature, low-cost process. For electrified COâ‚‚ conversion to displace it commercially, the energy cost per unit of output must be low enough that the total production cost, including capital and operating expenses, lands at or below fossil parity. That threshold is only achievable with a highly efficient conversion process.

D-CRBN’s plasma technology addresses this directly. With CAPEX reported at 50% lower than reverse water-gas shift (rWGS) technology and OPEX 30% lower than the second-in-class alternative, the economics are built on efficiency rather than on regulatory subsidy or green premiums. The system converts 2,000 tonnes of COâ‚‚ per square meter annually, delivering high throughput at a limited physical footprint. Critically, the reactor’s instant on/off capability allows operators to run conversion during periods of low electricity prices, for example, when renewable generation creates grid surplus, further compressing the effective energy cost per tonne.

The implication for industrial operators is straightforward: energy efficiency is not just an environmental metric in COâ‚‚ feedstock production. It is the primary lever for commercial viability. Technologies that cannot demonstrate competitive energy performance at industrial scale will not achieve adoption regardless of their carbon credentials.

How does CO2 feedstock production reduce ETS costs for industrial operators?

COâ‚‚ feedstock production reduces ETS costs by lowering the net volume of COâ‚‚ that an industrial facility must account for under the EU Emissions Trading System. When captured COâ‚‚ is converted into CO or syngas and reused within the production process, it does not enter the atmosphere, reducing the facility’s reportable emissions and, consequently, the number of ETS allowances it must purchase or surrender.

Under the ETS, each allowance represents one tonne of COâ‚‚ equivalent. Allowance prices have been volatile but structurally elevated as the EU tightens the emissions cap over time. For heavy industrial operators, steel plants, chemical facilities, refineries, the annual ETS liability can run into tens of millions of euros. Any technology that demonstrably reduces net emissions at the point of production directly reduces that liability.

The mechanism works as follows: instead of emitting COâ‚‚-rich off-gases into the atmosphere, a facility captures those streams and feeds them into a plasma conversion unit. The resulting CO is reused on-site, as a reducing agent in steelmaking, as a chemical feedstock, or as a syngas precursor. Because the carbon has been utilized rather than emitted, the facility’s net COâ‚‚ output falls, and its ETS obligation shrinks proportionally.

There is a compounding benefit. As ETS allowance prices rise, which the regulatory trajectory strongly suggests they will, the financial value of each tonne of COâ‚‚ avoided through CCU increases. This means the economics of COâ‚‚ feedstock production improve over time in line with carbon pricing, creating a structural incentive that strengthens rather than weakens as decarbonization policy tightens.

For plant engineers, sustainability directors, and procurement leaders evaluating their carbon cost exposure, on-site CO production from COâ‚‚ represents a route to simultaneously reduce input costs and compliance costs, a combination that makes the business case increasingly robust as the carbon price environment evolves. To assess what this could mean for a specific facility, speaking directly with D-CRBN’s industrial team is the most direct next step.

Electrified CO

Electrified SYNGAS

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