Foxbat Flyer said:
This will end up like the rumour of the engine that runs on water... Apparently there is an engine that is fully functional that runs on water, but it was sold to the highest bidder (Who happened to be an oil/fuel company), and has since been put on a shelf for when we run out of oil... but its just a rumour, so im not sure how much truth in that one...
I will assume that you are being serious here, as it allows me to talk about scientific literacy; If you're joking or not please don't take this as a personal insult.
Disclaimer aside, who here has heard of the laws of thermodynamics? If it's been a while or you just plain did not learn them I will give you the condensed version:
If it sounds too good to be true it is
There. Perpetual motion machine? Water-fueled Car? Miracle biofuel? Not according to thermodynamics. You cannot break even in energy. Ever. You always must settle for a loss (often a very large one, see Carnot Cycle). As long as you remember this you will be surprisingly scientifically literate.
Addressing your topic of a water-fueled car, Hess' law states that chemical energy is released by going from a high-energy molecule to a low energy one, the net change in energy can then be harnessed to do work (eg move cars). Water is a "low energy", stable molecule; the only reason petrol-based engines work is that they make this stable molecule (and CO2, another stable molecule) from less-stable higher-energy hydrocarbons. There is no more-stable lower-energy place for water to go.
Returning to the news article, thermodynamics has a special case that we like to use in life science, the 10% rule:
Every time you go up a level in the food chain you only retain 10% of the previous energy
This rule of thumb suggests that the available energy for our microbes is only 1/10 that of the cellulose that we feed it therefore the MAXIMUM amount of fuel we could possibly get is 10% the energy content of the feedstock. In reality, this figure is much lower.