Fungus produces Diesel

Patagonian Fungus produces near diesel, read WIRED article.

"Traditionally that's been an energy-intensive process that also involves lots of chemicals," said Andrew Groover, a plant geneticist studying cell wall formation at the U.S. Forest Service's Pacific Southwest Research Station. "So, one approach is to look for situations in nature where there are organisms that can break down wood as part of their natural lifestyle: wood rot, fungi, termites."

What's exciting about the Gliocladium roseum fungus, however, is that it can both break down cellulose and synthesize the liquid fuel.