In 2008, MSU scientists discovered a tiny fungus hiding inside a rainforest tree that naturally produced diesel-like fuel

Published 30 July 2026 · science

Image(s): Left/MSU/Right/Canva How a microscopic rainforest fungus turned out to produce diesel-like hydrocarbons Why scientists considered the discovery so important The fungus didn't produce diesel

Image(s): Left/MSU/Right/Canva How a microscopic rainforest fungus turned out to produce diesel-like hydrocarbons Why scientists considered the discovery so important The fungus didn't produce diesel, but it came surprisingly close A discovery that reshaped biofuel research For decades, scientists have searched for cleaner alternatives to fossil fuels, looking everywhere from algae and bacteria to agricultural waste. In 2008, one of the most unexpected discoveries came from deep inside the South American rainforest. Researchers identified a microscopic fungus living quietly within the tissues of a tree that produced a mixture of hydrocarbons strikingly similar to those found in diesel fuel.The remarkable organism, later nicknamed the "diesel tree fungus", raised the possibility that future biofuels might one day be produced by microbes rather than oil wells. Although the discovery did not replace conventional diesel overnight, it opened an entirely new direction in biofuel research and demonstrated how nature can sometimes solve problems in surprising ways.The breakthrough came when researchers from Montana State University studied microorganisms living inside the Ulmo tree (Eucryphia cordifolia) in the temperate rainforests of Patagonia in Chile.Among the organisms they isolated was a previously unknown fungus named Gliocladium roseum.

Unlike most fungi, this species naturally produced a complex mixture of volatile hydrocarbons, several of which were chemically similar to the compounds found in diesel fuel.The discovery was particularly significant because these hydrocarbons were generated directly by the fungus during normal growth, rather than requiring complex industrial processing.The Guardian reported in 2008 how the finding prompted scientists to investigate whether fungi could eventually become a sustainable source of renewable transport fuels.Most biofuels require crops such as maize, sugarcane or oilseed plants, which must be cultivated, harvested and processed before fuel can be produced.The fungus offered a completely different approach. Instead of relying on agricultural crops, it converted organic material into hydrocarbons through its own natural metabolism.Researchers suggested that, with further development, similar microorganisms might one day grow on agricultural waste, wood residues or other plant biomass, producing liquid fuels with a far smaller environmental footprint than conventional petroleum.The discovery also highlighted the largely unexplored potential of endophytic fungi, microorganisms that live harmlessly inside plant tissues.