The biofuels include bioethanol, biobutanol, biodiesel, vegetable oils, biomethanol, pyrolysis oils, biogas, and biohydrogen. There are two global biomass based liquid transportation fuels that might replace gasoline and diesel fuel. These are bioethanol and biodiesel. World production of biofuel was about 68 billion L in 2007. The primary feedstocks of bioethanol are sugarcane and corn. Bioethanol is a gasoline additive/substitute. Elioethanol is by far the most widely used biofuel for transportation worldwide. About 60% of global bioethanol production comes from sugarcane and 40% from other crops. Biodiesel refers to a diesel-equivalent mono alkyl ester based oxygenated fuel. Biodiesel production using inedible vegetable oil, waste oil and grease has become more attractive recently. The economic performance of a biodiesel plant can be determined once certain factors are identified, such as plant capacity, process technology, raw material cost and chemical costs. The central policy of biofuel concerns job creation, greater efficiency in the general business environment, and protection of the environment. (C) 2009 Elsevier Ltd. All rights reserved.