An American company is developing a genetically modified bacteria whose natural waste is Ethanol, or any other hydrocarbon:
http://news.yahoo.com/s/ap/20110227/ap_on_bi_ge/us_growing_fuel
Interesting for sure......
That sounds suspiciously like yeast. Let's see, take some grain, say malted barley, for instance. Soak it in warm water with a little yeast and some hops. Eventually, you have 'fuel'. It may not work well in a vehicle, but it can energize people into singing, dancing, and telling bad jokes very loudly.