One of the most prominent and promising renewable energy Biofuels can be converted directly to the liquid fuels. Biofuels is widely used for the transportation. There are various types of Biofuels such as Ethanol, Biodiesel, Bioalcohols, Green Diesel, and Biofuel gasoline, Vegetable Oil, Bioethers, Biogas, Syngas and Solid Biomass Fuels. Ethanol and Biodiesel are the commonly used biofuels. The main aim for introducing Biofuels was to replace Gasoline, Diesel Fuel and Coal. Green Diesel, Biogas. It is having enormous advantage when compared with the fossil fuels such as less greenhouse gases providing greater fuel securities. The use of Biofuel is widely dependent on the land availability. It is made from biological agents such as plant oils or animal through the set of chemical reactions. One of the major advantages for using the Biofuel is that they are renewable energy and don not lead to global warming unlike the fossil fuels. According to few facts, Biofuels is the only renewable energy which can replace the fossil fuels.