Lifyre writes: Scientists at Tulane have found the a natural bacteria (dubbed TU-103) that produces butanol. While butanol producing bacteria aren't new there are a few important points about this particular bacterium. It is the first natural bacteria that converts cellulose directly to butanol without the cellulose needing to be processed into sugar first and it can do this in the presence of oxygen, which kills other butanol producing bacteria. The simplification of the process could significantly decrease the production costs of butanol. This bacteria could allow virtually any plant product, such as paper or grass clippings, to be used to produce fuel for conventional vehicles.