Fuel Making Fungus

This could kill a whole of terrorists. Or just make everyone itch.

A newfound fungus living in rainforest trees makes biofuel more efficiently than any other known method, researchers say.

In fact, it's so good at turning plant matter into fuel that researchers say their discovery calls into question the whole theory of how crude oil was made by nature in the first place.

"This is the only organism that has ever been shown to produce such an important combination of fuel substances," said researcher Gary Strobel from Montana State University. "The fungus can even make these diesel compounds from cellulose, which would make it a better source of biofuel than anything we use at the moment."

The scientists are now working to develop its fuel producing potential, according to a paper published in the November issue of the journal Microbiology.

The fungus grows inside the Ulmo tree in the Patagonian rainforest in South America. "When we examined the gas composition of G. roseum, we were totally surprised to learn that it was making a plethora of hydrocarbons and hydrocarbon derivatives," the stuff of diesel, Strobel said. The fuel it produces has been dubbed "myco-diesel."