First Generation Biofuels are any fuels made from animal fats, starch, sugar, or vegetable oil. All of these come from renewable sources, although there is criticism that growing the products for these forms of biofuels divert farmland that could be used to grow food crops.

Biodiesel has a composition similar to fossil/mineral diesel except that components in biodiesel include animal fats and oils from soy, mustard, flax, and sunflower seeds. The oil or animal fat is reacted with an alcohol through a process called transesterification to create the fuel.

Biogas is created when organic matter breaks down anaerobically - without any oxygen. It can be produced from manure, sewage, and municpal waste. Some countries, like India, have created micro plants that are filled with manure use the biogas to power houses.

Syngas is a mix of carbon dioxide and hydrogen. It is created when biomass is combusted with a certain amount of oxygen. Syngas is used to produce diesel and can be converted into methane.

Bioalcohols are produced through the fermentation of starches and sugars. Ethanol is the most common, but there are also butanol and propanol.

Vegetable oil can be either used for cooking purpose or even as fuel. The oil with good quality is generally used for cooking purpose. In most of the countries, vegetable oil is mainly used for the production of biodiesel.

     Second Generation Biofuels consist of lignocellulose material, which is broken down into simple sugars by  enzymatic reactions and then fermented to produce ethanol. Lignocelluloses can be found in inedible plant matter, like woodchips, cornhusks, switchgrass, and even yard waste. These inedible parts have the advantage that their utilisation does not compete with food production. These inedible plant matters cannot be fermented directly and must be broken down by enzymes.

     Third Generation Biofuels are the use of algae also known as oilgae. Its production cost is minimal and it produces thirty times more energy production per acre as compared to the land required by other feedstock to produce biofuels. Algae has been known to have photosynthetic efficiencies of up to three times that of corn and almost four times that of switchgrass, meaning that it puts out more and quicker.

 
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