What's in your garden? Diesel 'shrooms

As if the ethanol movement didn't have enough problems, now comes a report that diesel fuel can be produced by naturally occurring fungus:

A fungus that lives inside trees in the Patagonian rain forest naturally makes a mix of hydrocarbons that bears a striking resemblance to diesel, biologists announced today. And the fungus can grow on cellulose, a major component of tree trunks, blades of grass and stalks that is the most abundant carbon-based plant material on Earth.

"When we looked at the gas analysis, I was flabbergasted," said Gary Strobel, a plant scientist at Montana State University, and the lead author of a paper in Microbiology describing the find. "We were looking at the essence of diesel fuel."

While genetic engineers have been trying a variety of techniques and genes to get microbes to create fuel out of sugars and starches, almost all commercial biofuel production uses the century-old dry mill grain process. Ethanol plants ferment corn ears into alcohol, which is simple, but wastes the vast majority of the biomatter of the corn plant.

What's even more interesting is this thought: "because the fungus can manufacture what we would normally think of as components of crude oil, it casts some doubt on the idea that crude oil is a fossil fuel."