Scientists found fungus making diesel fuel in 2008

In 2008, Montana State University scientists discovered the fungus Gliocladium roseum inside the Ulmo tree in Patagonia's rainforest.

The fungus naturally produces volatile hydrocarbons chemically similar to diesel fuel during its normal growth.

Unlike biofuels from crops, this fungus converts organic material directly into hydrocarbons without complex processing.

The discovery opened a new direction in biofuel research by demonstrating microbial hydrocarbon production.