A biofuel is a fuel that is produced through contemporary processes from biomass, rather than a fuel produced by the very slow geological processes involved in the formation of fossil fuels, such as oil. Since biomass technically can be used as a fuel directly (e.g. wood logs), some people use the terms biomass and biofuel interchangeably. More often than not however, the word biomass simply denotes the biological raw material the fuel is made of, or some form of thermally/chemically altered solid end product, like torrefied pellets or briquettes. The word biofuel is usually reserved for liquid or gaseous fuels, used for transportation. The EIA (U.S. Energy Information Administration) follow this naming practice. If the biomass used in the production of biofuel can regrow quickly, the fuel is generally considered to be a form of renewable energy.
Biofuels can be produced from plants (i.e. energy crops), or from agricultural, commercial, domestic, and/or industrial wastes (if the waste has a biological origin).[2] Renewable biofuels generally involve contemporary carbon fixation, such as those that occur in plants or microalgae through the process of photosynthesis.
Some argue that biofuel can be carbon-neutral because all biomass crops sequester carbon to a certain extent – basically all crops move CO2 from above-ground circulation to below-ground storage in the roots and the surrounding soil. For instance, McCalmont et al. found below-ground carbon accumulation ranging from 0.42 to 3.8 tonnes per hectare per year for soils below Miscanthus x giganteus energy crops, with a mean accumulation rate of 1.84 tonne (0.74 tonnes per acre per year), [ or 20% of total harvested carbon per year.
However, the simple proposal that biofuel is carbon-neutral almost by definition has been superseded by the more nuanced proposal that for a particular biofuel project to be carbon neutral, the total carbon sequestered by the energy crop's root system must compensate for all the above-ground emissions (related to this particular biofuel project). This includes any emissions caused by direct or indirect land use change. Many first generation biofuel projects are not carbon neutral given these demands. Some have even higher total GHG emissions than some fossil based alternatives.