http://www.sciencedaily.com/releases/2009/12/091210162222.htm
UCLA has genetically engineered bacteria to eat CO2 and turn it into isobutanol, taking energy from sun light. Isobutanol cannot readily be used in gas tanks yet, but the process of turning CO2 directly into a hydrocarbon can be much cheaper and easier than technologies like algae or cellulose into biofuel because there are no expensive intermediate steps.
If this technology can be *cheaply* scaled to high volumes and converted to something conventional engines can use, then I would personally suspect to see it displace a lot of other biofuels. Hopefully we’ll find out soon.
