Biofuels are liquid fuels produced from biomass rather than fossil fuels. The two main types are bioethanol, produced from crops high in sugar or starch through fermentation, and biodiesel, produced from vegetable oils or animal fats. Biofuels provide environmental benefits like reducing greenhouse gas emissions and decreasing dependence on foreign oil. While biofuels have advantages, their production also has potential drawbacks like requiring significant land and water resources as well as possibly introducing invasive species.