Researchers have generated gasoline from bactoria

http://www.nature.com/nature/journal/vaop/ncurrent/full/nature12536.html

The concerns about limited fossil fuels and the global environmental problem have focused attention on the develop biofuel from renewable resources. Researchers from Korea have engineered Escherichia coli stains that are capable of producing short chain alkanses, fatty acids, fatty esters, and fatty alcohols through the fatty acyl to fatty acid to fatty acyl-CoA pathway. They started off blocking the pathway of B-oxidation and to increase the short-chain fatty acids by deleting the fadR gene. Then, a modified thioesterase was used to convert short-chain fatty acyl-ACPS to the correspinding FFAs. The final engineered strain consist of nonane, dodecane, tridecane, 2 methyl dedocane, and tetradecane, which chain with small amounts of hydrocarbons.