In what could be a major breakthrough, Joule Biotechnologies announced that it has directly produced fuel from the plentiful carbon dioxide in the air around us using highly engineered photosynthetic microbes.

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As part of a National Science Foundation grant program to examine cutting edge ways to make nature work for us, a team of scientists at Iowa State University have been awarded $2 million to unravel how some plants and algae can make hydrocarbons and discover if the genes that govern that process might be isolated.

“These plants are capturing solar energy and creating something that’s chemically identical to petroleum,” said Jackie Shanks, Iowa State’s Manley R. Hoppe Professor of Chemical Engineering, in a statement.

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Just about this time last year I reported on the very promising and innovative Mcgyan® biodiesel process. It was one of the most popular stories gas 2.0 ran that year, and rightly so: the breakthrough seemed to deliver the possibility of making biodiesel in mere seconds from start to finish, reducing costs by half the price of other biodiesel, producing no waste, using no chemical reactants, and using any animal fat or vegetable oil as a feedstock.

At the time the company in charge of the project, Ever Cat fuels, had only succeeded at making a small-scale pilot operation of 50,000 gallons per year. But, as of 2 days ago, the process has been completely commercialized.

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I’ve been happy with all the recent efforts by European auto manufacturers to bring fuel-efficient diesels back to the States. From Volkswagen to Mercedes, diesels seem to be the new attempt at pleasing the US “green” crowd with classy, low-emissions fuel-sippers.

Reading that last sentence over, it seems funny to call them a “new attempt” because these high mileage diesels have been available to Europeans for a LONG time — but that’s another story.

So, while it’s debatable whether a gasoline-powered Prius at 40 mpg is more “green” than a diesel-powered Jetta at 40 mpg — it all has to do with how much of each type of fuel comes out of one barrel of oil — It’s a fact that having these new clean diesels as an option is certainly something the US has been lacking for a long time. And I appreciate having that option, I really do.

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This one may offend you more sensitive types as “ironic” or not green at all. But the fact is, the world needs bulldozers. Lots of them. But until now, anyone seeking a hybrid bulldozer was out of luck. But Caterpillar, the prolific maker of construction equipment has announced that for 2010 they will be selling the D7E, a diesel-electric bulldozer.

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