This story was originally published by Midwest Energy News on December 13, 2011.

An energy company in Iceland says it has become the first in the world to produce renewable fuel from CO2 emissions on a commercial scale (via Reuters):

The process essentially combines carbon dioxide with hydrogen to form methanol, which is similar to ethanol and can be derived from other sources such as wood or coal. Producers of the fuel face similar distribution challenges to ethanol producers in the U.S. — cars aren’t designed to run on the fuel, so it can only be blended in limited amounts (in Iceland, the blend limit is 3 percent).

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An energy company in Iceland says it has become the first in the world to produce renewable fuel from CO2 emissions on a commercial scale.