Cars, not people, will claim most of the increase in world grain consumption this year. The U.S. Department of Agriculture projects that world grain use will grow by 20 million tons in 2006. Of this, 14 million tons will be used to produce fuel for cars in the United States, leaving only 6 million tons to satisfy the world's growing food needs.
In agricultural terms, the world appetite for automotive fuel is insatiable. The grain required to fill a 25-gallon SUV gas tank with ethanol will feed one person for a year. The grain to fill the tank every two weeks over a year will feed 26 people.
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http://renewableenergyaccess.com/rea/news/reinsider/story?id=45441Article is a bit overblown IMO, but I think we should not ignore this point.
As far as solutions, at one extreme we have crops farmed specifically for energy. At the other we have the idea of only using waste from agriculatural crops, rather than the food product, sort of like how biodiesel started out.
The former threatens environmental destruction from excessive monoculture (and no doubt someone will inject GM crops into the fray.) The latter, failure of future biofuels to make a meaningful dent in our collective carbon footprint.
The best solution for biofuels is likely in the middle of those two extremes, IMO: we should be taking another look at crops that produce food, but we haven't farmed much because the amount of food produced per acre is low. This might allow the fuel product to subsidize a greater variety of foodstuffs. Which would be good, because almost everything we eat today is made from corn, and most of that which is not, wheat, and that's not healthy. In addition soil-friendly crops not normally farmed for food could help cut down on agriculture's impact.
In either case cellulosic technologies need to ramp up fast for ethanol, and other alternatives pursued both biodiesel and otherwise.