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Decrement in natural resources and increased environmental pollution has heightened up the demand for the production of fuels i.e. biologically synthesized, renewable in operation, with the least possible energy and chemical consumption. Electrocoagulation, a process that has been employed for the production and then conversion of CO2 into alcohols, carboxylic acids and somewhat esters i.e. valuable energy producing biofuels. The source of CO2 that has been utilized was synthetic oily wastewater, in order to get it converted into long chain hydrocarbons also, as those biofuels are considerable more these days. Aluminum was used as a sacrificial anode for the generation of coagulants naturally into the electrokinetic system. The experimental design was established using stainless steel and aluminum electrodes along with the recyclization of used engine oil so as to reduce the cause of oil spills and refineries pollution. Clean water was extracted after physical and electrochemical treatment given to the wastewater with 89% removal of COD, 64% reduction in the size of unwanted and hazardous flocs. The production of carboxylic acid with long chains has been investigated prior by the help of FT-IR of the sludge and later confirmed by the results of GC-MS. Linolenic esters in organic phase and acids of that group in the polar phase were reported. Cost effective design of experiment and production of precursors of energy and electricity, was the chief objective of this scrutiny. Application in fuel and energy market with better oil spill management is expected in future through this hybrid technique.