Techniques, systems, apparatus, and materials are disclosed for generating multi-purpose liquid fuel for isolating contaminants and storing energy. In one aspect, a method of producing a liquid fuel includes forming a gaseous fuel (e.g., by dissociating biomass waste using waste heat recovered from an external heat source). Carbon dioxide emitted from an industrial process can be harvested and reacted with the gaseous fuel to generate the liquid fuel. A hazardous contaminant can be dissolved in the liquid fuel, with the liquid fuel operating as a solvent or continuous phase for a solution or colloid that isolates the hazardous contaminant from the environment. The hazardous contaminant can include at least one of a carbon donor and a hydrogen donor.