Biofuels are derived from crops and plants. The two most popular types of biofuels are biodiesel and bioethanol. There are many pros and cons of using biofuel. The best reason why you should use biofuel is to reduce pollution. This type of fuel releases lesser amount of carbon dioxide. However, unlike conventional types of fuel, it is expensive to produce biofuel, which is primarily caused by the low investment put into the development of biofuel in the market. If there is enough funding, it would be worth it to put up a biodiesel power plant.