The Berkeley National Lab has engaged in "world-leading and pioneering work in nanotechnology and synthetic biology" to convert biofuels from biomass, generate biofuels by algae, convert water and carbon dioxide to fuels. Source. Its director since 1994, Nobel Prize winner Steven Chu will be named as Energy Secretary.
Read Chu-ing the fat of the land? In the Gristmill
And in related news... yesterday the National Research Council issued a critical 97 page report on the safety and regulatory standards of nanotech:
Research Council: Nanotech Safety Needs a Closer Look. Much Closer.