AIRCO™ Develops First-of-its-Kind Mobile Fuel System to Produce Synthetic Drop-in Fuels from CO₂ — Unlocking Decentralized Fuel Production Anywhere
The Containerized, Transportable System is Supported Through an 8-Figure AFWERX STRATFI Award with Funding from the U.S. Air Force
NEW YORK, NY (January 28, 2026) — AIRCO™, the technology company pioneering carbon conversion and next-generation energy solutions, today announced the development of its mobile, adaptable, and dynamic “MAD” Fuel System: a deployable, containerized technology platform designed to produce fuel anywhere in the world. Built through advanced manufacturing, the MAD Fuel System™ converts carbon dioxide and hydrogen into fully formulated, drop-in ready synthetic fuels, enabling production directly at the point of use, with a clear roadmap toward full autonomy. In its ultimate form, networks of these systems will operate as an intelligent, self-optimizing ‘fuel swarm,’ autonomously coordinating production to ensure fleets never run dry. The project is supported by a Strategic Funding Increase (STRATFI) award from AFWERX, the innovation arm of the Department of the Air Force (DAF) and a directorate within the Air Force Research Laboratory.
The effort has been undertaken by AIRCO in collaboration with multiple Department of War offices including AFPET, AFRL, and DLA, totaling approximately $70 million, including this most recent $15M award. This capability and funding will accelerate the development and deployment of the AIRCO MAD Fuel System and its upcoming commercial demonstration plant. The system is considered one of the six critical technologies by the U.S. Department of War, and this funding aims to bridge the gap between current Small Business Innovative Research Phase II efforts and full-scale implementation of AIRCO’s carbon conversion technology.
AIRCO’s MAD Fuel System is a self-contained, transportable system that can turn captured carbon dioxide, hydrogen, and energy from almost any source into jet fuel or diesel-equivalent fuel (Jet A-1 and DS-1). Because the system is feedstock-agnostic, it will be enabled to draw on virtually any energy (solar, wind, nuclear, or otherwise) or carbon source to deliver a fully-formulated fuel product. This flexibility makes the fuel system unlike any other in operation today, capable of drastically reducing the risks, costs, and complexity of traditional fuel logistics while strengthening energy security and resilience by decentralizing energy production for both defense and civilian infrastructure.
Today, fuel resupply missions remain among the most dangerous in military operations, a challenge the MAD Fuel System will directly address by enabling safe, on-site fuel generation for deployed forces and remote operations. Built on AIRCO’s dual-use carbon conversion technology, the work supported under STRATFI will advance both defense and non-defense applications, expanding the system’s impact far beyond the battlefield.
“At a time where energy security is paramount, we are moving from fuel logistics as a vulnerability to fuel logistics as a decisive asymmetric advantage,” said Gregory Constantine, CEO and Co-Founder of AIRCO™. “Imagine drone swarms returning to dispersed, AI-coordinated fuel nodes that produce CO2 derived fuel on demand. No tankers, no convoys, no single point of failure, with STRATFI helping make it real.”
AIRCO’s MAD Fuel System is the foundational hardware layer for AIRCO’s broader vision: an AI-native, decentralized energy web that will sustain autonomous air, land and sea platforms at scale. By turning any carbon source into an inexhaustible fuel source at the tactical edge, AIRCO is re-building the energy infrastructure.
The funding awarded to AIRCO through STRATFI builds on a strong record of collaboration with U.S. government agencies, including NASA, AFWERX, and a $67 million contract from the Defense Innovation Unit (DIU) through Project SynCE, which supports the development of technology to produce synthetic fuel in contested environments. This new award demonstrates a steady trajectory of scaling AIRCO’s CO₂-to-fuel conversion technology and delivering operational capability to both defense and commercial sectors.
AIRCO’s AIRMADE™ process powers the MAD Fuel System’s ability to efficiently convert CO₂ and hydrogen into optimized, fully formulated fuel products. By integrating AIRMADE™ into the system’s platform, AIRCO creates a flexible, mobile energy hub that can adapt to different environments and resources while delivering consistent, high-quality fuel output. The company’s work with both the Department of War and Department of Energy continues to assess how these systems can interface with renewable and nuclear technology to further enhance deployment flexibility.
By co-deploying these capabilities, AIRCO aims to increase the fuel supply chain resilience, and reduce reliance on traditional fuel convoys, ultimately improving safety for personnel and advancing the U.S. energy security mission. The strategic diversity of funds raised in both the private and public sectors has been instrumental to the company’s success and will continue to drive growth and adoption of the technology.
Disclaimer: The views expressed are those of the author and do not necessarily reflect the official policy or position of the Department of the Air Force, the Department of War, or the U.S. government.
About AIRCO
AIRCO™ is a world leader in carbon conversion technology, paving the way to global energy security by transforming CO₂ into a valuable resource. Its proprietary AIRMADE™ Technology is an adaptable platform that enables industries to efficiently produce high-demand, fully-formulated synthetic fuels from waste CO₂ and hydrogen. Currently focused on fuel applications, AIRCO's goal is to deploy the most cost-effective and scalable fuel production technology on the market.
The company has commercial partnerships with airlines including JetBlue and Virgin Atlantic, amongst others, and has been awarded multiple government contracts, including with NASA and the United States Department of War’s Defense Innovation Unit. The company has received industry recognition through awards such as Time Best Inventions, Inc. Best in Business, Fast Company World Changing Ideas, and the XPrize for Carbon Removal.
About AFPET
The Air Force Petroleum Office (AFPET), formally the Air Force Petroleum Agency, is the single enterprise manager for petroleum and aerospace energy, driving technological advancement for fuels, aerospace commodities, facilities, support equipment, and professional development for the Department of the Air Force. With a diverse civilian and military workforce, operating from locations globally, AFPET provides a full range of technical and professional services related to fuels, propellants, chemicals, lubricants, gases, and cryogenics for all aerospace vehicles, systems, and equipment.
About AFRL
The Air Force Research Laboratory, or AFRL, is the primary scientific research and development center for the Department of the Air Force. AFRL plays an integral role in leading the discovery, development and integration of affordable warfighting technologies for our air, space and cyberspace forces. With a workforce spanning across nine technology areas and 40 other operations around the globe, AFRL provides a diverse portfolio of science and technology ranging from fundamental to advanced research and technology development. For more information, visit afresearchlab.com.
About AFWERX
As the innovation arm of the DAF and a directorate within the Air Force Research Laboratory, AFWERX brings cutting-edge American ingenuity from small businesses and start-ups to address the most pressing challenges of the DAF. Headquartered at Wright-Patterson Air Force Base, Ohio, AFWERX employs military, civilian and contractor personnel executing an annual $1.4 billion annual budget. Since 2019, AFWERX has awarded over 10,400 contracts worth more than $7.24 billion to strengthen the U.S. defense industrial base and drive faster technology transition to operational capability. For more information, visit: afwerx.com.
About SpaceWERX
As the innovation arm of the U.S. Space Force and a unique division within AFWERX, SpaceWERX inspires and empowers collaboration with innovators to accelerate capabilities and shape our future in space. Headquartered in Los Angeles, SpaceWERX employs military, civilian and contractor personnel executing an annual $457 million budget. Additionally, SpaceWERX partners with Space Systems Command's Commercial Space Office (COMSO) as a collaborative program. Since it was aligned under AFRL in Aug. 2021, SpaceWERX has awarded over 1,470 contracts worth more than $1.46 billion to strengthen the U.S. defense industrial base and drive faster technology transition to operational capability. For more information, visit: spacewerx.us.