Cellulosic ethanol, in theory, is a much better bet. Most of the plant species suitable for producing this kind of ethanol — like switchgrass, a fast- growing plant found throughout the Great Plains, and farmed poplar trees — aren't food crops. And according to a joint study by the US Departments of Agriculture and Energy, we can sustainably grow more than 1 billion tons of such biomass on available farmland, using minimal fertilizer. In fact, about two-thirds of what we throw into our landfills today contains cellulose and thus potential fuel. Better still: Cellulosic ethanol yields roughly 80 percent more energy than is required to grow and convert it.
Still, I think the most "Sustainable" option would be to push research on turning everyday waste biomass (like what is thrown in the garbage; grass clippings, banana peels, floral waste, etc) into ethanol, it is possible and while i doubt it would "answer all our energy needs" (though there is no solution to all our energy needs) it would be using (unused) existing waste instead of growing new material.
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