Fungus that makes diesel : Debate over biofuels has often focused on whether they can truly replace fossil fuels without creating new environmental problems. In 2008, scientists reported an unexpected discovery that added a new idea to the conversation: a tiny fungus found in the Patagonian rainforest was naturally producing a mixture of chemicals that closely resembled diesel fuel, as per a report.
The researchers said more work would be needed before the fungus could be tested for large-scale fuel production.