The carbon in CO2 can be used to produce fuels that are in use today, including methane, methanol, gasoline and aviation fuels. The process involves using the CO2 in combination with hydrogen, which is highly energy-intensive to produce, and results in a carbon-containing fuel that is easier to handle and use than pure hydrogen (Figure 5). Low-carbon hydrogen can be produced from fossil fuels when combined with CCS, or through electrolysis of water using low- carbon electricity (IEA, 2019b).CO2-derived fuels are particularly interesting for applications where the use of other low-carbon energy carriers, such as electricity or hydrogen, is extremely challenging, such as in aviation. Several firms have already built demonstration and pilot plants producing methane and methanol from CO2 and hydrogen, together using hundreds to thousands of tonnes of CO2 per year. Other chemical and biological conversion pathways to produce CO2-derived fuels are in the early research or demonstration stages.