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This is also exactly what is holding back synthetic fuels from becoming profitable.

Fossil fuels will eventually lose out over synthetic fuels, but not until prices rise substantially.

How are "synthetic fuels" produced? If it's anything like synthetic lubricants, it's still fossil fuels, just with more energy-intensive processing.

From a theoretical standpoint, virtually any source of carbon could be used, you could even make it out of the carbon already in the atmosphere: