a) producing hydrogen and oxygen from the electrolysis of water;

b) introducing the hydrogen in combination with carbon dioxide into a first catalytic reactor that comprises a first CO₂ hydrogenation catalyst that produces syngas;

c) introducing the syngas into a second catalytic reactor that uses a second catalyst that primarily produces liquid fuel and tailgas;

d) introducing the tailgas from the second catalytic reactor to a tailgas conversion system that utilizes oxygen from the electrolyzer to produce additional syngas

wherein the first CO₂ hydrogenation catalyst comprises a metal alumina spinel impregnated with a second element at a concentration between 1 part-by-weight and 35 parts-by-weight, and wherein the metal alumina spinel is selected from a group consisting of magnesium aluminate, calcium aluminate, strontium aluminate, potassium aluminate and sodium aluminate, and wherein the second element is selected from a group consisting of Ba, Ca, Co, Fe, Mg, Ni and Zn;

and wherein the first catalytic reactor is operated at a temperature from 1.500 to 2.000° F.;

and wherein there is a conversion efficiency of CO2 to CO for the process, and wherein the conversion efficiency is 65 percent to 100 percent.