A gentleman in Columbus ohio has come up with a cost effective method of producing Butanol. butanol can be run straight in a gasoline powered engine with very few modifications, mostly resetting the timing. The fuel system does not need modification. He is planning on producing it from bio waste. It uses a fermentation process. He is currently looking for funding for a pilot plant. See links below.

http://www.talkenergy.com/articles/05/07/20/1310246.shtml?tid=23

http://www.butanol.com