Socio-ecological niche model offers an insight for biofuel production under optimal ecological and economic conditions. The concept explained using case studies from five locations deemed to match biophysical requirements and socio-economic conditions needed for extraction and processing of biofuels. Food security and biodiversity conflicts have been found paradoxical under the socio-ecological niche model, mainly due to use of marginal lands as production sites and with use of inedible plant species. Energy needs met at grassroots level by biofuel crops have shown optimistic and beneficial results, in many cases positively transforming the communities involved. Based on economic gain and sustainability of natural environments, 1st generation biofuels could be the solution to a sustained development in poverty stricken communities across the globe. The socio-ecological niche model offers a platform for analysing the so called backyard biofuel production.