The definition of biofuels includes many different types of energy produced from different biological elements. The answer though to this question is a definitive yes, if the right biofuels are developed to meet the energy needs of the world as well as its environmental needs.
Perhaps the least cost-effective and environmentally friendly biofuel is corn. Unfortunately most of the biofuels created in the United States are based on corn. Corn actually produces a very small amount of oil per acre, about 18 gallons, which is on the low end as compared to some other choices. About 85 million tons of the 335 million tons of corn produced annually in the United States is converted into ethanol. The remaining crops go to animal feed and to be used as sweeteners. To produce enough biofuel from corn to power our energy needs would take well over half of all the available farmland. In addition, corn actually has a very large negative impact on the environment especially because of the use of pesticides and fertilizers.
An alternative to corn as a biofuel is algae. Algae can be grown in many different places, like the smokestacks of power plants to have a dual role in the production of energy, first as a filter to clean power plant emissions, then as an energy source. Algae is extremely efficient, and yields about 1,000 gallons of oil for each acre of land. This makes it the most efficient biofuel currently available. The amount of algae used to filter at a typical 1,000 megawatt power plant could produce 40 million gallons of biodiesel as well as 50 million gallons of ethanol, and still filter over 40 percent of the carbon emissions from the power plant smoke stack.
Also useful as a biofuel is switchgrass. Switchgrass can grow up to 12 feet tall in a single season and when harvested, can produce 320 gallons of usable oil per acre. This is much more efficient than either soy or corn. Switchgrass also makes an attractive biofuel alternative because it can be grown in soil that might not otherwise support any crop. Switchgrass is also environmentally friendly in that it doesn't require a lot of fertilizers or insecticides to grow well and requires relatively little water.
No matter what biofuel is being considered, one thing is clear. When considering all of the impact of producing energy including greenhouse gas emission, the carbon footprint, and sustainability and renewability, biofuels can be a viable alternative to fossil fuels. The trick is to find the right biofuel sources and develop them conscientiously so that the same situation doesn't occur again. Efficiency in all its definitions must be considered in replacing fossil fuels with biofuels, not just cost per unit.