What they probably mean is the power plants can run on their stuff and they can suck in the CO2 from the stacks and have the /bactera/sun turn it into more non-fossil fuel to run the power plant.
Also, remember this article was most likely written by a journalist, not a scientist, so all details are questionable.
As for the oil companies buying it up and shelving it that is absurd. The best way to increase profits is to cut costs and become more efficient. If the oil companies had a way to produce already refined diesel without huge refineries, fleets of oil tankers, oil drilling rigs, huge exploration and development costs they could sell gas at a lower cost and still make even bigger profits.
I agree that if this is real and not a bunch of hype it will be the environmentalists and the left who will try to stop it. There motive has never been to save the environment but to destroy freedom and progress. They are motivated by hatred for man, this Earth, and existence. They will attack anything that make man's life better and allows men to succeed and achieve. Oil is the most efficient and cost effective fuel we have right now and is the engine of economic growth. It's no wonder they hate it so much.