Biomass (plant material) is a renewable energy source because the energy it contains comes from the sun. Through the process of photosynthesis, plants capture the sun's energy. When the plants are burnt, they release the sun's energy they contain. In this way, biomass functions as a sort of natural battery for storing solar energy. As long as biomass is produced sustainably, with only as much used as is grown, the battery will last indefinitely.

In general there are two main approaches to using plants for energy production: growing plants specifically for energy use, and using the residues from plants that are used for other things. The best approaches vary from region to region according to climate, soils and geography

Biofuels include a wide range of fuels which are derived from biomass. The term covers solid biomass, liquid fuels and various biogases. Liquid biofuels include bioalcohols, such as bioethanol, and oils, such as biodiesel. Gaseous biofuels include biogas, landfill gas and synthetic gas.

Bioethanol is an alcohol made by fermenting the sugar components of plant materials and it is made mostly from sugar and starch crops. With advanced technology being developed, cellulosic biomass, such as trees and grasses, are also used as feedstocks for ethanol production. Ethanol can be used as a fuel for vehicles in its pure form, but it is usually used as a gasoline additive to increase octane and improve vehicle emissions. Bioethanol is widely used in the USA and in Brazil.

Biodiesel is made from vegetable oils, animal fats or recycled greases. Biodiesel can be used as a fuel for vehicles in its pure form, but it is usually used as a diesel additive to reduce levels of particulates, carbon monoxide, and hydrocarbons from diesel-powered vehicles. Biodiesel is produced from oils or fats using transesterification and is the most common biofuel in Europe.

Biofuels provided 2.7% of the world's transport fuel in 2010.