For most perfume makers, the key feature is the ingredients that make it smell great. However, for Stafford Sheehan, a cofounder and chemist at Air Company, the most crucial aspect of perfume-making is its lack of scent. Based in New York, Air Company utilizes technology to convert planet-warming carbon dioxide into ethanol. This ethanol is then combined with essential oils and water to create perfume. The pale yellow Air Eau de Parfum, although about 50% more expensive than Coco Chanel's signature No. 5, is considered uniquely valuable by Sheehan. Each 50-milliliter bottle uses 3.6 grams of CO2 that would otherwise have been released into the atmosphere. The packaging proudly states: "Turning CO2 into something beautiful." While the amount of CO2 used in each bottle is small, Air Company's perfume demonstrates one way in which captured carbon can be utilized. Renewable energy and electric cars alone will not be sufficient to eliminate CO2 emissions entirely. It is highly likely that the world will need to capture billions of tons of the gas annually in the upcoming decades. A significant portion will likely be stored underground. Utilizing it for products through carbon capture and utilization (CCU) - from perfume to jet fuel - could be a crucial tool in combating climate change. However, this nascent industry faces significant challenges. According to a 2019 report by the International Energy Agency, roughly 230 million tons of CO2 are utilized annually. While about one-third of this is reused to extract more oil from the ground, the number of companies exploring new applications for carbon has surged in recent years, opening up avenues to unlock climate benefits. Companies like CleanO2 in Calgary are converting captured CO2 into feedstock for soap production, while Newlight Technologies in California turns carbon from the air into biodegradable plastics. Germany's Covestro AG is transitioning some of its fossil fuel-based feedstocks to carbon-derived materials for various products, from car components to medical devices. Most companies focused on CO2-sequestering products are still in their early stages. To boost this emerging sector, global venture capitalists invested nearly $500 million in carbon utilization businesses in 2022, a stark contrast to the minimal funding in 2015. Sasha Mackler, the executive director of the energy program at the Washington, DC-based non-profit Bipartisan Policy Center, notes, "It's just a whole different landscape today than it was a decade ago." LanzaTech Global Inc., led by chief executive officer Jennifer Holmgren, uses a carbon-eating bacteria to produce alternative ethanol in bioreactors. The company's advancements have led to agreements with airlines like Japan's All Nippon Airways to supply CO2-derived jet fuel. LanzaJet, a spin-off, aims to commence commercial-scale production of sustainable jet fuels this year. Despite the excitement surrounding sustainable aviation fuel (SAF) derived from captured carbon, the industry remains relatively small. Although major airlines worldwide have committed to using at least 10% sustainable jet fuels by 2030, SAF accounts for only 0.1% of the global aviation fuel supply, with much of it originating from sources other than captured CO2. Holmgren states, "There's a lot more interest because consumers have become much more interested in buying things that are lower carbon." This shift has enabled LanzaTech to expand its product range utilizing CO2. Collaborating with companies like Plastipak, LanzaTech has developed carbon-derived packaging materials, and polyester converted from its ethanol has replaced petroleum-based counterparts in various clothing items. However, the road to widespread use of CO2-derived polyester is still long. Regulations and incentives worldwide are also propelling the growth of carbon utilization. For example, the Inflation Reduction Act signed by US President Joe Biden in 2022 increased the tax credit for carbon capture and utilization to $60 per metric ton, aiming to make expensive projects more financially viable. In order to mitigate climate change effectively, the IEA estimates that carbon capture must reach 7.6 billion tons of CO2 annually by mid-century. CCU is expected to play a role, although the extent of its impact remains uncertain. Third-party verification is deemed crucial to accurately assess the climate benefits of carbon utilization. The rise of CCU technology coincides with challenges faced by traditional carbon capture and storage methods. Carbon capture and storage, involving the collection and sequestration of CO2 emissions underground, has encountered obstacles due to the need for extensive pipelines, which many local communities oppose. Carbon utilization companies propose a solution by utilizing carbon near its capture site. Glenwood Mason Supply in Brooklyn illustrates this by converting captured CO2 into concrete blocks, which not only store carbon but also enhance block strength. This innovative approach has garnered attention from companies like Amazon, leading to increased demand for their lower-carbon building materials. However, while promising, the carbon utilization industry still needs to overcome various hurdles to challenge the existing norms. Companies like Air Company are working towards scaling up their operations to have a significant impact on climate change.

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