Biofuels are fuels produced from biomass and waste materials. There are different forms of biofuels, namely fuel pellets (solid), bioethanol and biodiesel (liquid), and biogas (gaseous).Fermentation is the most widely used method for biofuel production; however, other methodsare also used to produce biofuel. One of the major factors increasing the demand for biofuel isthe wide use of ethanol and biodiesel.The Biofuels market in Chinais expected to experience a moderate growth rate during theperiod 2012-2016. This moderate growth is mainly due to the increasing need to reduceemissions. The Biofuels market inChinais expected to grow at a CAGR of 16.88 percent duringthe period 2012-2016.