Capturing and storing (or sequestering, if you prefer) carbon dioxide to meet international greenhouse gas reduction targets is expected to be a high growth industry in the next few years if the technology can be made cost effective.

An alternative to storing carbon dioxide underground is to work within the industrial waste stream to convert CO2 to an energy source and valuable organic molecule. Mantra Venture Group of Seattle is developing technology that will turn CO2 into formic acid, which is naturally produced by stinging ants who use it as a defense mechanism.

Formic acid is currently used in a variety of applications, including a hog feed additive, for de-icing planes, in pharmaceuticals and rubber manufacturing. According to Mantra CEO Larry Kristof, the company's electro-reduction of carbon dioxide (ERC) technology requires electricity, platinum as a catalyst, and a salt water solution.

The technology cab be used to recycle carbon at coal plants, cement plants, and in petroleum refineries, according to Kristof. Mantra has an agreement to build small scale facility in Korea with an eye towards large scale plants in 2012, and full commercialization by 2014. Mantra acquired the technology from the University of British Columbia in 2007, and in May 2009 received a grant of $75,000 from the government of British Columbia.

A potentially larger use for formic acid would be as an energy source in small fuel cells that can power electronics devices such as phones or laptops. Tekion, of Burnaby, British Columbia, has a license to formic-acid fuel cell technology from the University of Illinois at Urbana-Champaign. According to the company, the fuel cells would coast about 10-15 percent more than batteries, but would double the amount of power.

Another potential application for formic acid is in "steel pickling" a finishing process that removes oxides. Kristof says that formic acid is a biodegradable alternative to hydrochloric acid.

With carbon caps looming, the price of carbon credits likely to rise, and carbon sequestration still a technical and economic challenge organizations will be looking for ways to eliminate CO2 disposal from their balance sheets. Recycling carbon to create a fuel source -- especially one that is not carbon emitting -- sounds very attractive in theory. Another option currently being cultivated is recycling CO2 can by feeding it to algae to turn it into a biofuel.

John Gartner is Editor in Chief of Matter Network and an Industry Analyst for Pike Research.