Biofuels are liquid fuels and blending components (i.e., a mixture of components used to produce motor gasoline) produced from biomass feedstock — organic matter used as a renewable energy source. Biofuels are used primarily for transportation purposes. Basically, these are fuels derived from an organic source that you can use to fuel your various vessels of transportation. Biofuels primarily serve as an alternative to other fuels, such as oil and its derivatives.