Diesel compounds from a rainforest fungus

Researchers from Montana State University have discovered a fungus in the rainforest of Patagonia that makes diesel compounds from cellulose.

The fungus, Gliocladium roseum, lives inside the Ulmo tree. (Sounds like a Lewis Carroll poem.) It churns out hydrocarbons and hydrocarbon derivatives, which lead author Gary Stroebel has called "myco-diesel."

Producing these compounds directly from cellulose on a large scale could be a game-changer for the biofuels industry.

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