The natural world still has plenty of surprises waiting for us, it seems. Scientists have discovered a Patagonian rainforest fungus that produces something pretty close to diesel by consuming cellulose:

The fungus, called Gliocladium roseum and discovered growing inside the ulmo tree (Eucryphia cordifolia) in northern Patagonia, produces a range of hydrocarbon molecules that are virtually identical to the fuel-grade compounds in existing fossil fuels.

Of course, burning the stuff is going to do as much environmental harm as the oil-based equivalent, but if they can scale up the process it might be an attractive renewable alternative to making fuels from dwindling oil supplies or otherwise useful food crops.