Abstract: A method of manufacturing from cellulose a light fuel for internal combustion engines. The source of the cellulose can be the common cellulosic materials such as cereal straw, maize husks, wood waste, sawdust, paper or packing wood. The raw material is crushed, then composted and processed to separate the lignin from the cellulose. The cellulose is acid hydrolized to a glucose, placed in a basic medium and fermented to produce an isopropyl alcohol which in turn is converted to isopropyl ether. The isopropyl ether is combined with a branched lower alkane, preferably isoctane and subjected to a cobalt catalyst, preferably Co(AlO.sub.2).sub.2 or Co(CH.sub.3 CO.sub.2).sub.2.4H.sub.2 O. The catalysis is carried out at about 500.degree. C., at a pressure of about 50 atms., in an inert atmosphere for about 10 to 20 seconds. The resultant product can be used as an internal combustion engine fuel.