Biofuel is fuel that is produced from organic matter (biomass), including plant materials and animal waste. It is considered a renewable source of energy that can assist in reducing carbon emissions. The two main types of biofuel currently being produced in Australia are biodiesel and bioethanol, used as replacements for diesel and petrol (gasoline) respectively. As of 2017 Australia is a relatively small producer of biofuels, accounting for 0.2% of world bioethanol production and 0.1% of world biodiesel production.
Total commercial biofuel production for 2018 is estimated at 290 million liters (ML): 250ML of ethanol and 40ML of biodiesel.
This article mainly deals with biofuels for personal vehicles, though cooking, heating and electricity generation can also use biofuel. Historically in Australia cooking and home heating have been accomplished by burning wood, a biofuel. 909,000 households in Australia still used firewood as their main heating method in 2005, with a further 300,000 using firewood occasionally.