What are biofuels? 1. The use of biological material (biomass) as a fuel or lighting material is not new; the earliest evidence for humans using wood for fires is at Gesher Benot Ya'aqov in Israel, 790,000 years ago. However, concern over the impact that the burning of fossil fuels is potentially having on the climate has resulted in renewed interest in biofuels. The difference between fossil fuels and biofuels is that fossil fuels were produced millions of years ago when plants and other organisms died, became buried and were subjected to high temperatures and pressures forming coal, oil or natural gas. Biofuels, on the other hand, are produced from biological material that has been living recently. There are a number of ways in which biofuels can be produced.