http://www.futurepundit.com/archives/003138.html#003138

In a related and overlapping discussion, occuring at Future Pundit and elsewhere, there is an argument that government mandated percentages for biofuels in Europe will drive loss of rain-forest in Brazil. The above Future Pundit link eventually tracks back to a recent New Scientist Article on this.

Tech Central amusingly captions this as:
"Be careful what you wish for"
The moral of course is
"Green and Clean" isn't necessarily what it seems.

Friends of the Earth in the UK seem to think if the biodiesel is produced "sustainably" the rain forest will be ok. I doubt it.
NS:
Europe's small market in biofuels was dominated by home-grown rapeseed (canola) oil. But surging demand from the food market has raised the price of rapeseed oil too. This has led fuel manufacturers to opt for palm and soya oil instead. Palm oil prices jumped 10 per cent in September alone, and are predicted to rise 20 per cent next year, while global demand for biofuels is now rising at 25 per cent a year.

Roger Higman, of Friends of the Earth UK, which backs biofuels, says: "We need to ensure that the crops used to make the fuel have been grown in a sustainable way or we will have rainforests cleared for palm oil plantations to make bio-diesel."

GMO Pundit http://gmopundit.blogspot.com/2005/11/more-publicity-for-green-biofuels.html

Is the energy wasted should a canefarmer burn the cane before it is harvested, included in the calculations?

* In 1908, the Ford Model T was designed with a carburetor adjustment that could allow the vehicle to run on ethanol fuel produced by American farmers.

* Since it was first launched in 1975, the Brazilian Ethanol Program remains to date the largest commercial application of biomass for energy production and use in the world. By the mid-'80s, most cars coming off the production line ran on pure ethanol. From the 1970s to the late '90s, ethanol yields per acre had risen from 242 to 593 gallons.

* Indústria Aeronáutica Neiva, a wholly owned Embraer subsidiary, has received type certification for its ethanol-fueled Ipanema cropdusting aircraft from Brazilian aviation regulating agency Centro Técnico Aeroespacial (CTA). The Ipanema is the first series production aircraft in the world coming out of the factory certified for flying with ethanol.

These 3 examples just show that Ethanol is around for a long time, but actually just got acceptance in the last few years. In these days with record high oil prices, more and more governments are promoting the production and usage of ethanol. Didn't the corn growers in the US already appreciate rising corn prices?
Wasn't there a sugar price rise in QLD, thanks to Mr. Peter Beattie?
Why would Bill Gates invest $84 Million in an Ethanol company, if he wouldn't see the potential of this alternative fuel?
Willie Nelson is doing well with his sell of Biodiesel, as I understand.
So in our perspective, the doors are wide open for this renewable energy source and it will be the future in the energy sector.

I'll post this here too

Ethanol mixs in fuel are not a bad thing if pure. What they don’t tell you its not possible to be pure unless you buy it in sealed drums direct.

Fact ethanol absorbs water from the air and with contact.

Fact ALL fuel stations have water in the bottom of the tanks. The pickup for fuel in these tanks are not at the bottom, so unless the water isn’t monitored and comes up too high it not a problem. Straight petrol floats on water and doesn’t mix or absorb water.

On the other hand any ethanol mix will come into direct contact with water at all fuel stations, a fact.

So straight away your running a small % of absorbed water through your cars which will effect some parts such a fuel injectors over time.