Catalyzes the hydroxylation of n-alkanes in the presence of a NADH-rubredoxin reductase and rubredoxin. It preferably hydroxylases C8-C16 hydrocarbons. 2 H(+) + O2 + octane + 2 reduced [rubredoxin] = H2O + octan-1-ol + 2 oxidized [rubredoxin] Binds 2 Fe(3+) ions per subunit. Hydrocarbon metabolism; alkane degradation. Induced by n-alkanes. Belongs to the fatty acid desaturase type 1 family. AlkB subfamily.