Biofuels technology can be defined as application of feedstocks in a sequence of processes leading to the production of different biofuel types. Biofuels processes are either natural or chemical stages of an industrial or pilot project development leading to the final production of biofuels. Various Types of Biofuel Wood. This is the most basic form of fuel that is derived from organic matter. ... Biogas. This is the gaseous form of biofuels. ... Biodiesel. This biofuel is liquid in nature. Ethanol Methanol. Butanol. Uses of Biofuels Heating. Primary biofuels – or materials that are still in their raw state, without processing or treatment – are a common form of heating homes in developing countries where no alternative fuel source is available. ... Transport. ... Aviation. ... Lubrication. ... Oil clean-up operations. hird generation biofuels are also known as “algae fuel” or “oilage” since they are produced from the algae. Algae leads to the production of all types of bio-fuels such as biodiseal, gasoline, butanol, propanol and ethanol with high yield, approximately 10 times higher than the second generation biofuel