Hi crys1978,
Thanks for writing and wow... what a great question!! So when we are in our "fat-burning" zone, it is utilized for fuel for our muscles, and other working organs and is oxidized... Just as when wood is set on fire. It releases oxidized and releases energy.
There are bi-products that are a result of bodily functionsthat are removed from the body via waste, etc.
Keep up the great work and great questions!
Kelli