A process for producing high octane fuel from carbon dioxide and water is disclosed. The feedstock for the production line is industrial carbon dioxide and water, which may be of lower quality. The end product can be high octane gasoline, high cetane diesel or other liquid hydrocarbon mixtures suitable for driving conventional combustion engines or hydrocarbons suitable for further industrial processing or commercial use. Products, such as dimethyl ether or methanol may also be withdrawn from the production line. The process is emission free and reprocesses all hydrocarbons not suitable for liquid fuel to form high octane products. The heat generated by exothermic reactions in the process is fully utilizes as is the heat produced in the reprocessing of hydrocarbons not suitable for liquid fuel.