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|Biological reactions are good at forming carbon-carbon bonds, using carbon dioxide as a raw material for reactions powered by sunlight. It's called photosynthesis, and cyanobacteria, also known as 'blue-green algae,' have been doing it for more than 3 billion years.
Using cyanobacteria to grow chemicals has other advantages: they do not compete with food needs, like corn's role in the creation of ethanol. [I believe this has long been one of Craig Venter's pet projects, and I believe one with enormous potential for hydrogen production.]