Synthetic hydrocarbons can be produced in chemical reactions between carbon dioxide, which can be captured from power plants or the air, and hydrogen. The fuel, often referred to as electrofuel, stores the energy that was used in the production of the hydrogen.
Hydrogen fuel is typically prepared by the electrolysis of water in a power to gas process. To minimize emissions, the electricity is produced using a low-emission energy source such as wind, solar, or nuclear power. 
Through the Sabatier reaction methane can then be produced which may then be stored to be burned later in power plants (as a synthetic natural gas), transported by pipeline, truck, or tanker ship, or be used in gas to liquids processes such as the Fischer–Tropsch process to make traditional fuels for transportation or heating.
There are a few more fuels that can be created using hydrogen. Formic acid for example can be made by reacting the hydrogen with . Formic acid combined with  can form isobutanol.
Methanol can be made from a chemical reaction of a carbon-dioxide molecule with three hydrogen molecules to produce methanol and water. The stored energy can be recovered by burning the methanol in a combustion engine, releasing carbon dioxide, water, and heat. Methane can be produced in a similar reaction. Special precautions against methane leaks are important since methane is nearly 100 times as potent as CO, regarding the 20-year global warming potential. More energy can be used to combine methanol or methane into larger hydrocarbon fuel molecules.
Researchers have also suggested using methanol to produce dimethyl ether. This fuel could be used as a substitute for diesel fuel due to its ability to self ignite under high pressure and temperature. It is already being used in some areas for heating and energy generation. It is nontoxic, but must be stored under pressure. Larger hydrocarbons and ethanol can also be produced from carbon dioxide and hydrogen.
All synthetic hydrocarbons are generally produced at temperatures of 200–300 °C, and at pressures of 20 to 50 bar. Catalysts are usually used to improve the efficiency of the reaction and create the desired type of hydrocarbon fuel. Such reactions are exothermic and use about 3 mol of hydrogen per mole of carbon dioxide involved. They also produce large amounts of water as a byproduct.