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Biofuels are produced from recently dead organic matter, as opposed to petroleum which is produced from long dead organic matter. There are two ways of producing biofuels. One is to concentrate on growing plants high in sugar, such sugar cane, sugar beet, and corn.

These are then distilled to create ethyl alcohol (ethanol) which is used as a gas replacement. The other method is to grow plants high in vegetable oil such as oil palm or soybean to be burned in diesel engines. Biofuels are carbon neutral, because while the plants are alive they help convert CO2 into oxygen. The downside to biofuels, however, is that they take up arable land to grow fuel rather than edible crops. 

Submitted by SuperGreenMe on Sep 21, 2008