http://www.guardian.co.uk/environment/2008/nov/04/biofuel-plants-biochemistry-science
----
A tree fungus could provide green fuel that can be pumped directly into vehicle tanks, US scientists say. The organism, found in the Patagonian rainforest, naturally produces a mixture of chemicals that is remarkably similar to diesel.

"This is the only organism that has ever been shown to produce such an important combination of fuel substances," said Gary Strobel, a plant scientist from Montana State University, who led the work. "We were totally surprised to learn that it was making a plethora of hydrocarbons."
----
Could be very nifty, the fungus eats cellulose and produces diesel. So it has the potential to make fuel from a lot of waste organic matter.

Jay