Bio-fuels are defined as solid, liquid or gas fuels derived from recently dead biological material.  Bio-fuels are considered renewable in contrast to fossil fuels, which are derived from long dead biological material. The use of Bio-fuels and other forms of renewable and sustainable energy reduces dependence on petroleum and enhances energy security.  

Humans have used biomass fuels in the form of solid Bio-fuels for heating and cooking since the discovery of fire. The discovery and use of fossil fuels; coal, gas and oil, have dramatically reduced the amount of biomass fuel used in the developed world for transport, heat and power.  Recent social, political and economic trends are beginning to reverse this phenomenon.

Bio-fuels offer the possibility of producing energy without a net increase of carbon into the atmosphere. This is because the plants used in the production of the fuel removed CO2 from the atmosphere. Bio-fuels can be produced from any (biological) carbon source; although, the most common sources are photosynthetic plants.

Globally, Bio-fuels are most commonly used to power vehicles, heat homes, in corn stoves and cooking stoves. The Bio-fuels industries are expanding in Europe, Asia and the Americas.

Categories of Bio-fuels

• Ethanol is also known ethyl alcohol.  It is created from crops high in sugar (sugar cane, sugar beet, and sweet sorghum or starch (corn/maize), and then use yeast fermentation to produce ethanol. It is also possible to make cellulosic ethanol from non-edible plant parts, but this can be difficult to accomplish economically. Wood and its byproducts can also be converted into biofuels such as woodgas, methanol or ethanol fuel.

• Bio-diesel is created from vegetable oil. Oil is extracted from plants that contain high amounts of vegetable oil, such as oil palm, soybean, algae, or jatropha.  The oils are heated, their viscosity is reduced, and they can then be burned directly in a diesel engine, or they can be chemically processed to produce fuels such as biodiesel.

• Biomass refers to living and recently dead biological material that can be used as fuel or for industrial production. Biomass refers to organic plant or animal matter.  This matter may have many uses, most commonly it used to generate electricity, produce biofuels. though it also refers to the raw material used to create building materials, fibers, chemicals or heat. Biomass may also include biodegradable wastes from other processes.  Production of biomass is a growing industry as interest in sustainable fuel sources is growing.

Investors looking for the best investments in bio-fuels have many opportunities to consider.  They can invest in bio-fuels by investing in new bio-fuel technologies,  or by identifying the strongest companies currently producing and distributing product already.  Investors can also seek out the best investments in bio-fuels by discovering new technologies for producing bio-fuels and new refining processes for bio-fuels.