As a result of the depletion of fossil resources, ongoing population growth, and the industrialized economy, energy demand has been rising quickly throughout the world. India is now the world’s third-largest oil consumer, surpassing Japan and Russia. Today, biofuel research is conducted worldwide because surrounding two essential characteristics: sustainability and renewability. Biofuels have gained considerable significance as a result of dwindling oil sources, worries about energy security, and the escalating environmental issues associated with climate change and greenhouse gas emissions. In most cases, biofuels are produced by subjecting materials that have been densified to the process of heat conversion. In the disciplines of research and development, alternative energy development is a top focus. Due to the depletion of fossil fuel resources, it has become important to find innovative replacements for fossil fuels, such as biofuels, to generate heat and power. Biofuels may be generated using several methodologies, encompassing biological, chemical, and physical approaches. The three steps of densification systems’ pre-, during-, and post-pelletization procedures convert biomass into pellets. Several agricultural wastes, such as grain dust, crop leftovers, and fruit tree residues, are available as sources of agricultural energy. Bioenergy from biomass, such as leftovers and energy crops, can be used to produce contemporary energy carriers. This article focuses on an overview of sustainable and renewable biofuel resources and their commercialization.