Advanced biofuels are derived from lignocellulosic biomass, nonfood and crop feedstocks, agricultural and forest residues, and industrial waste.

First generation biofuels like corn-based ethanol are not a one-to-one replacement for gasoline, diesel, and jet fuels, and lack the environmental potential of advanced biofuels. Ethanol, and other simple yet widely used biofuels, can reduce emissions by 19-48% compared with gasoline. This is compared to advanced or cellulosic biofuels, which deliver at least a 50% reduction in greenhouse gas emissions, and many of them deliver a reduction of 80%.