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The fatty acyl group is transported into the mitochondrial matrix, where it undergoes beta-oxidation.
In the intermembrane space of the mitochondria, fatty acyl CoA reacts with carnitine in a reaction catalyzed by carnitine acyltransferase I (CAT-I), yielding CoA and fatty acyl carnitine. The resulting fatty acyl carnitine crosses the inner mitochondrial membrane.