The "biobattery" uses a mixture of water and enzymes (cellulase) to break down cellulose in the paper to glucose, while another batch of enzymes then "picks apart" the resulting pieces. The reactions leave behind hydrogen ions and electrons.
The electrons flow through an outer circuit and generate electricity, while the hydrogen ions mix with oxygen from the air and form water vapor. The prototype battery generates sufficient energy to power a small fan.
The paper "fuel" can be either pieces of corrugated board (see photo at right) or shredded paper.
TAPPI
http://www.tappi.org/