<p>Biofuels and the sustainable environment are the two major issues of this century. Natural resources and global environment is depleting and has increased the need for fuel production. Fuels ought to be produced organically, be renewable when used, and require the least amount of energy and chemicals. The method of electrocoagulation is used to produce CO₂ and subsequently transform it into biofuels that are useful sources of energy. Synthetic oily wastewater was used as the source of CO₂ to convert it into long chain hydrocarbons. Using aluminum as a sacrificial anode allowed coagulants to naturally form in the electro-kinetic system. The presented study revealed that precisely controlled parameter in this unique work has made it possible to execute electrochemical conversion. In-situ generation of CO₂ into biofuel molecules through a hierarchal pathway of conversion into alcohols, carboxylic acids and alkyl esters was studied. The sludge's FT-IR analysis was used to look into the long-chain carboxylic acid synthesis, and the GC–MS results later corroborated this. Achieving a cost-effective experiment design and producing energy precursors and electricity through creative treatment were the major accomplishments of the current study. The ultimate goal is to determine how to apply it in the energy and fuel markets for improved oil spill management by scaling up the process from lab to industrial scale in the future.</p> Graphical Abstract <p></p>