Both of a diesel's big advantages on the ground its efficiency and its torque (pulling power) are the result of its high compression of the fuel-air mixture in its cylinders.
This is possible because with the lasers, the location of the ignition can be in the center of the air-fuel mixture, rather than just the portion closest to it.
The first well supplies oxidants (a mixture of water and air or water and oxygen), which are injected into the location where the process is actually occurring.
Fischer-Tropsch derived fuels for aviation have been produced recently for the Department of Defense by U.S. based Syntroleum, and have been successfully tested by the US Air Force in a B-52 jet with all eight of its engines fueled by the mixture.