The evolution of biofuels is away from using food crops as the raw material. For example, Brazil produces biodiesel from sugar cane. To date the split between raw sugar production as a food additive and biofuels is about 50/50. In terms of corn produced for biofuel in the U.S., almost all of the product grown for this purpose is not varieties for human consumption. The division is between use for animal feed and biofuel production. Ultimately the move to cellulosic ethanol will change the source of raw materials from the ear on the corn to corn stover, the stalk and stubble of the corn plant. Switch grass will also be a major source for cellulosic ethanol. Today it is grown on wasteland and the idea is to intensify switchgrass growth in areas where farms do not plant food crops.
The petroleum industry is an investor in biofuel technologies but only marginally so. Yes they spread FUD to keep fossil fuels in the pipeline.
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