Fig. 1. Myroxylon balsamum, the host plant of endophyte EC-12. Photo by Gary Strobel.

Fig. 2. Nodulosporium sp., the imperfect stage of the endophytic Daldinia sp. which is the topic of this report. Photo by Gary Strobel.

This fungus was discovered as an endophyte associated with the rainforest tree Myroxylon balsamum in the upper Napo River region of Ecuador (Fig. 1). A Nodulosporium sp. with the unobserved perfect stage Daldinia eschscholtzii (EC-12), has been shown to produce VOCs similar to those found in diesel, while exhibiting moderate bioactivity against a wide range of plant pathogens. The organism fits the taxonomic description based on cultural, morphological and molecular genetic characteristics (Fig.2). The organism also possesses moderate antimicrobial activity in the gas phase against a wide range of plant pathogens. Most interestingly, the organism is able to grow on a number of cellulosic biomass by directly converting cellulosic biomass to volatile substances. Some of the volatiles made by this organism of greatest interest are 1-methyl-1,4-cyclohexadiene; I,3-dimethyl-1-cyclohexene and a number of benzene and naphthene derivatives. Analyses of this material shows even greater numbers of hydrocarbons that observed by GC/MS analysis of culture plates. The organism is one of a number of endophytic microorganisms that have recently been shown to have the genetic potential to make high energy compounds that may eventually have utility in meeting the energy needs of the nation.