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I think their might be a naming issue here. I was going by the wikipedia article for biodiesel which says it's made directly from crops and it's
Which seems like what your talking about. It doesn't seem to point to a name for that though, maybe just biofuel. It does say some biodiesel is made from waste oil but also that:
And that about half of current U.S production is from virgin oil feedstock. 10% of all grain is already used for biofuel, and that's just to cover the bit of ethanol used for petrol, if we transitioned even a fraction of cars to full biofuel that number would go up by a lot.
There's also still an opportunity cost with even the waste oil. If we have the capacity to collect and refine waste oils into fuel, then we can probably also just recycle it and refine it back to food standards.
I should have been more clear: yes, biodiesel can come from things that compete with food crops, but the biodiesel made from waste is the only kind I endorse.
(Fun fact: the kind I use in my car is made from chicken fat, a byproduct of all the chicken processing plants we have here in northern Georgia.)
It's also possible to make synthetic gasoline, by the way, and I'm only endorsing making it from CO2 produced as a byproduct of something else (and, pointedly, not coal gasification or steam reforming of natural gas).
That's where this part of my comment came in:
In Australia we have chip shops along the lonely roads through the desert. Some of them are so isolated there's no mains electricity. Recently they became electric car accessible by attaching car charge stations to biodiesel generators. The waste oil from frying the chips powers the electric cars.