Energy Independence? Diesel from Sun, Water and CO2

http://news.yahoo.com/s/ap/us_growing_fuel
Begin quote from above article.

CAMBRIDGE, Mass. – A Massachusetts biotechnology company says it can produce the fuel that runs Jaguars and jet engines using the same ingredients that make grass grow.
Joule Unlimited has invented a genetically-engineered organism that it says simply secretes diesel fuel or ethanol wherever it finds sunlight, water and carbon dioxide.
The Cambridge, Mass.-based company says it can manipulate the organism to produce the renewable fuels on demand at unprecedented rates, and can do it in facilities large and small at costs comparable to the cheapest fossil fuels.
What can it mean? No less than "energy independence," Joule's web site tells the world, even if the world's not quite convinced.
"We make some lofty claims, all of which we believe, all which we've validated, all of which we've shown to investors," said Joule chief executive Bill Sims. end quote.



If the above is true then biotechnology has found a way to literally grow diesel and/or ethanol directly from sunshine and water.

Later: My wife made an interesting point about the above article. She was concerned that so much fresh water would be used to grow our fuel worldwide when fresh clean water is at such a premium that people in the U.S. often pay 2 dollars or more per liter for water that tastes good from a store rather than drinking tap water almost anywhere. Though people often cook with reverse osmosis water out of a tap almost no one I know any longer ever drinks directly from a tap without first either boiling it or running it through reverse osmosis with a Culligan or other water purifying system.

With world water supplies becoming ever more polluted like this, what effects will genetic engineering plants have upon us humans and our water supplies? This question hasn't been properly asked(or answered). So, basically it goes like this. What's the point of being able to grow our own diesel or ethanol if it causes other health problems to our water supplies to do so? And are we vulnerable to new and still unknown problems from all this genetically modified stuff just like all the genetically modified grains like corn(patented as an insecticide), wheat, soybeans, rice etc. that appear to be killing and maiming many people who eat these genetically modified foods worldwide.(If the people only could prove that is what is killing them but they can't because they aren't told when they are actually eating genetically modified foods anymore because of company liability and bribes).(here in the U.S.)