1. Biofuels are liquid fuels made from biomass like plants, crops, and waste oils that can replace or complement gasoline and diesel. 2. The two main types are bioethanol made from sugarcane, corn, beets or wheat, and biodiesel made from vegetable oils like rapeseed, sunflower, and palm oil. 3. Biofuels can reduce greenhouse gas emissions compared to fossil fuels but producing them costs more than gasoline and diesel currently.