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The skeptic in me says "Yeah and the by products of burning hydrocarbons are just water and co2" .

Aluminum dust sounds like it would be a disaster if in the air we breathe.

None of this is an educated position, just thoughts of a software engineer.

Aluminium dust would indeed be pretty bad, but as I understand it, this would be closed system like a battery where the Aluminium would be recycled.

Um, CO2 is the problem. Also, no actual fuel you can buy just produces water and CO2.

That's exactly the OP's point.