Japanese businesses are making inroads into the field of synthetic fuels, which can drastically reduce carbon dioxide emissions. Some have announced major investments in US startups.

Synthetic fuels are also known as e-fuels. Liquids are created by collecting carbon dioxide from the atmosphere, and emissions from factories. They are combined with hydrogen, and virtually no carbon dioxide is emitted during combustion.

Investors in one US startup include trading house Mitsui & Co., Development Bank of Japan, and a subsidiary of printing giant Toppan Holdings.

Their investments in California-based Twelve Benefit are said to total over 3 billion yen, or about 20 million dollars.

Twelve Benefit was established 10 years ago. It is a leader in developing CO2 electrolysis technology, which is essential in producing synthetic fuels.

The startup is expected to begin producing e-jet fuel as soon as this year for US and European airlines.

Other Japanese entities announced similar investments last month. Both trading house Mitsubishi and the Japan Organization for Metals and Energy Security announced investments in an e-fuel project by US startup Infinium Holdings.