Researchers focus on finding Renewable Energy Sources (RES) and green energy for a sustainable future owing to ecological sustainability standards, growing power demands, depletion of traditional energy resources, and ecological damage caused by global warming and climate change. Bioenergy is a very viable option as it may be used for various energy needs via appropriate conversion methods. This analysis focuses on the promise and problems of producing biofuels using different feedstocks and advancements in process technology. The use of biofuels, such as biodiesel, ethanol, bio-oil, syngas, Fischer-Tropsch Hydrogen, and methane (CH4), generated from agricultural crop left-overs, micro- and macroalgae, and other biological waste via thermo-bio-chemical procedures, has been determined to be an environmentally beneficial option for energy production. Developing and implementing biofuels in industry and transportation significantly reduces reliance on petroleum and coal. The literature study indicated that biofuels derived from crops and microalgae have the potential to be the most effective and appealing method. The area of biofuels has made significant advancements via genetic engineering, which has opened up new possibilities for large-scale production for commercial use. However, the process of producing biofuels on a big scale remains difficult. Therefore, it is crucial to address this issue by converting biomass into biofuels using innovative technology to meet present and future energy demands.