Dependency on the agriculture sector for energy is perhaps a matter of more concern than the energy crisis itself as food security becomes a greater global challenge (FAO 2006). Agriculture, energy, and public policies for sustainable development are enmeshed with challenges and opportunities. One of the biggest question of this time to what extent the first generation biofuel lever economic development in developing countries. What are the opportunities and challenges of biofuel industry development in developing countries? What are the economic and social promises of biofuel industry development? Are they real? This thesis focuses on biofuel industry development in developing countries, responses to food security issues, and policy proposals for the future.

Two case study countries are Tanzania and Malaysia and studies are being made within the context of existing status of food security situation.