AFWERX Supports Development of Modular Fuel Technology for Contested Environments
DAYTON, Ohio — Fuel distribution remains a significant logistical challenge for military operations in contested and remote environments. Conventional fuel supply chains often rely on transportation routes, large storage infrastructure and frequent resupply missions that can increase operational risk, limit mission endurance and place additional demands on personnel.
AFWERX awarded AIRCO, a carbon-conversion technology company, a $15 million Strategic Funding Increase (STRATFI) contract to continue development of its Mobile, Adaptable and Deployable (MAD) Fuel System.

AFWERX’s STRATFI award is part of the Small Business Innovation Research (SBIR) program, which provides funding to small businesses developing technologies with potential applications for the Department of the Air Force and the Department of Defense.
The technology is a containerized platform designed to produce synthetic jet fuel or diesel fuel at or near the point of use. According to the company, the system captures carbon dioxide and produces hydrogen from locally available sources, converting them into liquid hydrocarbon fuel.
The approach is intended to reduce reliance on traditional fuel delivery methods.
If development and testing are successful, the system could provide another option for fuel production during expeditionary operations. It could allow units operating in remote or dispersed locations to produce fuel closer to the point of use, rather than relying solely on fuel transported from established supply hubs.
The technology also is being considered in connection with Agile Combat Employment concepts, which emphasize the ability to operate from distributed locations.

Other Department of Defense organizations involved in the continued development of the fuel system include the Defense Logistics Agency, the Air Force Petroleum Office and the 12th Air Task Force. Planned next steps include fuel qualification activities and support for AIRCO’s planned commercial demonstration plant.
Distributed logistics remains a key component of Department of the Air Force operational planning for contested environments. Technology could potentially increase operational flexibility and reduce logistical demands in austere locations.
AIRCO’s work demonstrates how AFWERX can help advance emerging technologies from development toward potential operational applications. Through collaboration with industry and investment in innovative solutions, AFWERX helps address technology challenges that could affect future warfighter capabilities.
*Disclaimer: References to non-federal entities do not constitute or imply Department of War or Air Force endorsement of any company or organization.
