Unlike other renewable energy sources, biomass can be converted directly into liquid fuels, called "biofuels," to help meet transportation fuel needs. The two most common types of biofuels in use today are ethanol and biodiesel, both of which represent the first generation of biofuel technology.
The Bioenergy Technologies Office (BETO) is collaborating with industry to develop next-generation biofuels made from wastes, cellulosic biomass, and algae-based resources. BETO is focused on the production of hydrocarbon biofuels—also known as “drop-in” fuels—which can serve as petroleum substitutes in existing refineries, tanks, pipelines, pumps, vehicles, and smaller engines.