http://www.opednews.com/populum/linkframe.php?linkid=102860 researchers from the UCLA Henry Samueli School of Engineering and Applied Science have genetically modified a cyanobacterium to consume carbon dioxide and produce the liquid fuel isobutanol, which holds great potential as a gasoline alternative. The reaction is powered directly by energy from sunlight, through photosynthesis.
Toxic swamps of anaerobic bacteria may appeal to some, but if it's all the same to you I'll take a forest.
Man, can you imagine if they ever actually do anything with this, having a "bacteria fuel cell" in your car? It pumps your engine emissions into the bacteria and they generate fuel for the car? That would be incredible.
C02 --> CH4 occurs in bacteria. Japanese biochemists want to gen-modify the bacteria to speed up the process. Sped-Up Bacteria Could Transform Carbon Dioxide into Natural Gas - methane - Gizmodo
Seems like this process requires a fermation. Wouldn't the oil producing algae farms be a higher yield? Arizona State University : Biofuels Initiative - Algal-Based Biofuels & Biomaterials .