Biofuels are fuels which are derived from biomass- renewable energy sources made from biological materials. The term biofuels includes solid biomass, liquid fuels and biogases. These energy sources are quickly gaining momentum in the public and scientific worlds as a result of spikes in oil price, and the increasing need of energy security, as well as the concerns regarding greenhouse gas discharges from fossil fuels.
One example of such a biofuel is bioethanol, an alcohol created by the fermentation of sugar components of plants. It is made primarily from crops of sugar and starch. As technology develops, trees and grasses are becoming more usable in the process as well. The ethanol is effective as a fuel for vehicles in its purest form, but is generally added to gasoline in order to improve vehicle emissions and increase octane. Another example is biodiesel.
Investments and interest in biofuels are increasing. In 2007, investment in the field passed $4 billion worldwide. In 2008, biofuels provided 1.8% of the world?s transport fuel.