Typical Bio Fuel Distillery Biomass usually consists of organic waste produced by human, animal or plant activity. Cultivation can grow material for producing bio-fuels such as corn, sugarcane, soybeans, palm oil, flaxseed, jatropha, and rapeseed. Others are animal excreta, biodegradable waste from industries like timber, rice husks, straw, decomposed food and sewage. All these materials are turned into biogas with the help of anaerobic digestion. This carbon cycle organic compound is utilized for the production of bio-fuel. Research has suggested utilizing micro algae along with other supplements such as hydrogen, bio-diesel, ethanol, methane, and methanol as an alternate source of fuel. Bio-fuels aren't a new invention they have existed since before World War II. Scientists like Rudolf Van Diesel invented a peanut oil fuel and Nikolaus August Otto invented Ethanol as a substitute for non-renewable fuel resources. The founder of Ford Motor Company, Henry Ford designed the Ford Model T car, which ran on Ethanol. But after the discovery of crude oil, which was cheap and easy to extract, bio fuel research suffered a setback. Due to the alarming rise in oil prices, pollution and diminishing non-renewable fuels, the worlds focus is shifting to bio fuels. George W. Bush, the President of the United States in 2007, has stated that by 2025, seventy five percent of the usage of crude oil fuels will be replaced by bio fuels. An amount of $375 million US dollars has been designated for bio-energy research at centers across America. In 2005, United States was the largest ethanol fuel producing country with the production of sixteen billion liters. The European Union has published that by the year 2020; nearly nineteen million tons of fuel will be available from bio mass and out of which fifty percent will be derived from organic waste. Bio-fuel's popularity is increasing day by day in the automotive sector. Research on corn-derived ethanol has being taken one step further to produce a cellulose ethanol, which can be easily derived from grass and plants without affecting the food chain. In the process of production of bio fuels major amounts of non-renewable resource are being used presently. Additionally the total carbon produced is less when compared to other sources. Carbon is present due to the absorption of atmospheric carbon dioxide by plants for their growth. The concept of a carbon neutral is being developed so as not to deplete forests in large amounts and to maintain the level of carbon in the air. Presently bio fuels are not used as a standalone fuel; it is mixed in oils and fuels used for different purposes.