Carbon Utility Brings Clean Energy Innovation and Job Creation to Holbrook, AZ

A pioneering clean-tech startup is bringing its bold vision for carbon-negative fuels to Northern Arizona. Carbon Utility, a company developing new ways to turn air and water into sustainable energy products, has signed a lease agreement with the City of Holbrook in Arizona to establish its first U.S. pilot facility.

Carbon Utility has already begun building out its pilot location in Holbrook, Arizona.

The lease establishes an early milestone in the company’s broader mission to revolutionize how the world generates renewable fuels from waste and atmospheric CO₂.

“This is a huge milestone for us,” said Jay Foster, CEO of Carbon Utility. “Our technology captures carbon dioxide from the air and hydrogen from water, and we turn that into real, usable fuels—like synthetic diesel or sustainable aviation fuel—as well as materials like carbon fiber. Holbrook gives us the right location, partners, and people to start scaling this work in the U.S.”

Carbon Utility’s modular system is designed to be compact and efficient. Unlike traditional energy plants that require large plots of land and complex infrastructure, the company’s units can be stacked vertically and operated with a relatively small amount of water—roughly 100 gallons per day at pilot scale. The initial Holbrook facility will produce about four gallons of renewable fuel per day, with plans to scale output tenfold in the near future, according to The Painted Desert Tribune.

But the impact goes far beyond energy production. The facility is expected to create skilled jobs in the region, including roles for electricians, plumbers, and engineers. Carbon Utility also plans to collaborate with Northland Pioneer College to offer internships and build a local pipeline of talent.

“This will be our first facility in Arizona and our first in the U.S.,” Foster added. “We looked at a number of locations, but Holbrook stood out because of the people, the vision, and the strong support from numerous stakeholders. This isn’t just a technical test site—it’s the beginning of our commercial future.”

The project also marks a major step forward in Northern Arizona’s push to become a leader in clean energy manufacturing, an effort supported by White Mountain Economic Development (WMED) and its federally funded MAKE-IT grant.

Awarded in 2024 by the U.S. Department of Energy, the grant is focused on expanding clean energy manufacturing in rural regions and supporting companies that align with long-term sustainability goals.

“Carbon Utility is exactly the kind of innovative company we hoped to attract when we launched this initiative, and they represent one of the region’s first big successes,” said Russ Yelton, Executive Director of WMED. “Their technology directly supports a cleaner energy future, and their decision to launch in Holbrook shows that Northern Arizona is ready to lead in this space. We’re proud to help bring this project to life.”

Another angle of Carbon Utility's new location in Holbrook.

The lease agreement, which was unanimously approved by the Holbrook City Council at the end of May, represents a strong vote of confidence in Carbon Utility’s vision and the city’s commitment to growth. City officials have emphasized their support for high-impact economic development that brings new industries and good-paying jobs to the community.

“We’re making products that the world urgently needs—fuels that don’t come from fossil sources and don’t add more CO₂ to the atmosphere,” Foster said. “And we’re doing it in a way that’s safe, scalable, and rooted in local communities.”

As Carbon Utility prepares to begin site work later this year, the Holbrook pilot facility stands to become a launchpad not just for new technology, but for a new kind of clean energy economy in Arizona.

Learn more about Carbon Utility and their technology at https://www.carbonutility.com/.

For more information about WMED and their economic development efforts, please visit https://www.wmedev.org/.