Unlike natural resources such as petroleum or coal, biofuels are either derived from waste or materials that grow, making them a renewable source of energy. Sources for biofuels are widely varied, ranging from corn and sugarcane to animal fats and forestry waste products.

Biofuels have long been used as a source of feedstock for energy. The technology needed to effectively commercialize biomass as an energy feedstock is still in its infancy. Alternative energy is seen as a way to reduce our dependence on foreign sources of petroleum feedstocks as well as a potential way to help reduce greenhouse gases. 

Advantages
The biggest advantage to biofuels is their ability to be renewed, although renewal time varies from source to source.

Issues
There are many issues surrounding the use of biofuels, including those related to handling and distribution. Neither ethanol nor biodiesel, two well-known forms of biofuels, can be transported by pipeline. Due to their chemical properties, these biofuels must be segregated from other fuels and distributed via barge, truck or railcar.

Another social issue concerning biofuels is the “fuel versus food” debate. Some argue that using food as feedstock will have a dramatic impact on the price of related consumer goods. Research is being conducted on turning cellulosic waste such as corn stalks, corn cobs and algae or energy crops like switchgrass into viable sources of energy. However, technology has not yet rendered fuels created from these materials commercially viable.

For More Information
Biofuels and Renewables 101, an overview of how biofuels, wind power, hydroelectric and other renewable energy sources are produced and consumed in the United States, provided by U.S. Energy Information Administration.
Developments in the U.S. Alternative Fuels Market, an overview of consumer trends in alternative fuels, prepared by the Department of Energy.