NOVELTY - Producing (M1) liquid fuels involves providing feed stream comprising carbon dioxide and water; heating the feed stream to produce heated feed stream; compressing air stream to produce pressurized air stream; heating the pressurized air stream to produce heated air stream; reacting the heated feed stream and heated air stream in solid oxide electrolytic cell to form syngas and oxygen-containing stream, where the electrolytic cell comprises cathode, anode and power supply; treating the syngas stream to produce treated syngas stream; and converting the syngas to produce liquid fuels.    USE - For producing liquid fuels such as diesel, jet, gasoline, and/or light fuel gas (claimed).    ADVANTAGE - The method combines the novel solid oxide electrolytic cell (SOEC) for efficient and clean conversion of feedstock to hydrogen and carbon monoxide (syngas), with the SOEC uniquely integrated with gas-to-liquid fuels process. SOEC may be used for high temperature co-electrolysis of water and carbon dioxide to produce clean hydrogen and carbon monoxide, thus eliminating the costly tar and contaminant removal steps present in coal and biomass gasification processes. The method further provides integration between the up/downstream process, which generates steam, reuses plant water, and recycles some or all of the hydrogen derived from the syngas and fuel synthesis processing steps back to the SOEC. This hydrogen recycle reduces SOEC operational costs.    DETAILED DESCRIPTION - INDEPENDENT CLAIMS are included for the following:    (1) producing (M2) liquid fuels involving providing feed stream comprising carbon dioxide and water; removing hydrogen sulfide by scrubbing the feed stream utilizing liquid oxidation method to form scrubbed feed stream; polishing the scrubbed feed stream utilizing zinc oxide bed to produce polished feed stream; heating the polished feed stream to produce heated feed stream having temperature of 800-850 degrees C; compressing air stream to pressure of 1-2 bar to produce pressurized air stream; heating the pressurized air stream to produce heated air stream having temperature of 750-850 degrees C; reacting heated feed stream in solid oxide electrolytic cell to form syngas and oxygen-containing stream; separating condensable components from the syngas to produce dry syngas, where the condensable components comprise water, and where condensing comprises cooling the syngas to temperature of less than 50 degrees C; compressing the dry syngas to produce pressurized syngas, where the pressurized syngas has pressure of at least 35 bar; heating the dry syngas to produce heated syngas, where the heated syngas has temperature of at least 800 degrees C; splitting the dry syngas to produce syngas side-stream and main syngas stream, where the syngas side-stream comprises less than 5 mass.% of the dry syngas stream and main syngas stream comprises the remainder of the heated syngas; providing the syngas side-stream utilizing water-gas shift reactor to produce shifted syngas stream with hydrogen content higher than hydrogen content of the syngas side-stream; separating at least portion of the hydrogen content from the shifted syngas stream to produce hydrogen recycle stream; feeding the hydrogen recycle stream to the feed stream heating step; and converting the main syngas stream to the liquid fuels; and    (2) a system for producing liquid fuels comprising carbon dioxide scrubber for removing sulfur from feed stream to produce scrubbed feed stream; heat exchanger for heating the scrubbed feed stream to produce heated feed stream; carbon dioxide polisher to produce polished feed stream; heat exchanger to produce heated polished feed stream; solid oxide electrolytic cell, where the cell comprises cathode, where the cathode receives the heated polished feed stream and produces syngas; and anode, where the anode receives oxygen source stream; condenser, where the condenser removes water from the syngas to produce dehydrated syngas; and compressor to compress the dehydrated syngas to produce compressed syngas.