Typically, Cyanobacteria utilize sunlight, water, and CO2, and then "exhale" oxygen, under aerobic conditions. The source of the CO2 is of interest here. According to Joule Unlimited, the source is "waste CO2", whatever that means. References to their super secret plans are linked to from Wikipedia (#19) from when it was first patented (sorry, can't seem to paste link here).
The person who can smile when something goes wrong has thought of someone to blame it on.