Scientists in California have genetically altered small bugs so that when they feed on agricultural waste they excrete crude oil. The bugs are bacteria from industrial yeast or nonpathogenic strains of E. coli. The fatty acids normally excreted by them during fermentation are molecularly very close to crude oil. Through genetic modification of the DNA, they can easily change the process to create crude oil. The process is basically the same as using natural bacteria to produce ethanol, although the energy-intensive final process of distillation is virtually eliminated because they excrete a substance that is almost pump-read.

LS9 is a company near Silicon Valley that claims that this “Oil 2.0” will not only be renewable but also carbon negative – meaning that the carbon it emits will be less than that sucked from the atmosphere by the raw materials from which it is made.

Because crude oil (which can be refined into other products, such as petroleum or jet fuel) is only a few molecular stages removed from the fatty acids normally excreted by yeast or E. coli during fermentation, it does not take much fiddling to get the desired result. For fermentation to take place you need raw material, or feedstock, as it is known in the biofuels industry. Anything will do as long as it can be broken down into sugars, with the byproduct ideally burnt to produce electricity to run the plant.

The company is not interested in using corn as feedstock, given the much-publicized problems created by using food crops for fuel, such as the tortilla inflation that recently caused food riots in Mexico City. Instead, different types of agricultural waste will be used according to whatever makes sense for the local climate and economy: wheat straw in California, for example, or woodchips in the South.

The closest that LS9 has come to mass production is a 1,000-litre fermenting machine, which looks like a large stainless-steel jar, next to a wardrobe-sized computer connected by a tangle of cables and tubes. It has not yet been plugged in. The machine produces the equivalent of one barrel a week and takes up 40 sq ft of floor space.