We've covered the run-your-car-on-coconuts story before (Ethan's coconut biofuels story is the best place to start), but now Reuters brings us the latest:

Palm trees conjure an enduring image of the South Pacific, providing shade on a white sandy beach as the water gently laps the shore and coconuts for cocktails garnished with small brightly colored paper umbrellas.

But many impoverished Pacific island nations are also looking to coconuts to combat soaring world oil prices and cut severe balance of payment deficits by using coconut oil to make biofuel.