Via Tresler, here's a neat little start-up: Solazyme. They made jet-fuel out of algae:

Solazyme’s algal-derived aviation fuel as analyzed by the Southwest Research Institute (SwRI), one of the nations leading fuel analytical laboratories, passed the eleven “most challenging specifications needed to meet the ASTM D1655 standard for Aviation Turbine Fuel. The tested areas included the key measurements for density, thermal oxidative stability, flashpoint, freezing point, distillation and viscosity among others. Of the eleven tested parameters, the Solazyme aviation fuel passed the ASTM D1655 requirements for every measurement. Therefore, the Solazyme algae-based aviation kerosene has passed the biggest hurdles needed to successfully develop a commercial and military jet fuel fully consistent with existing engines and infrastructure” as stated in the SwRI report.

President Obama should give those guys a phat Pentagon contract to get things scaling. Swords into plowshares, bitches.