Carbon Engineering, a Canadian direct air capture (DAC) and air-to-fuel (ATF) startup, has partnered with Huron Clean Energy, The Upper Nicola Band, and Oxy Low Carbon Ventures to develop a large-scale commercial ATF facility.

The proposed facility will utilize Carbon Engineering’s DAC and ATF technologies to capture carbon dioxide from the atmosphere and produce up to 100 million liters of low-carbon fuel per year.

These fuels are said to have up to 90% fewer emissions than conventional hydrocarbons and can be used in airplanes, ships, trucks, and automobiles, without the need to modify the vehicles.

The facility will be built on a 100-acre land 25 km outside of Merritt, British Columbia, and expect to begin constructing the plant in 2023, and operations are targeted to commence in 2026.

Analyst QuickTake: This marks the first time that Carbon Engineering announced any plans for its ATF business. Up to now, the company’s sole focus has been on commercializing its DAC business. Carbon Engineering’s first commercial DAC facility in Texas is also expected to begin construction in 2022 and start operations in 2024.