Beta-oxidation is the process by which fatty acids are broken down in the mitochondria to generate acetyl-CoA molecules. There are four steps - activation, transport into the mitochondria via carnitine shuttle, beta-oxidation cycles removing two carbons each, and oxidation of acetyl-CoA in the citric acid cycle. Defects can cause conditions like SIDS or methylmalonic acidemia. Fatty acid oxidation provides the majority of energy during fasting states.