Can Small Hydropower and Synthetic Fuels Coexist in Mountainous Regions?

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Hello! I'm a mid-career electrical engineer going through a career transition into two widely different fields: synthetic fuels and small hydropower production. I live in a mountainous area with a decent amount of small hydropower resources that have yet to be developed, and I plan on using the generated energy to produce drop-in replacement carbon-neutral synthetic fuels for vehicles.
 
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