Abstract: The increasing demand of energy and concern of green house gas emission has resulted in searching for a renewable form of energy that is less pollutant and economically efficient. To achieve this goal, biofuel technology is now globally embraced as the promising technology to replace petroleum fuels with alternative fuels produced from renewable sources such as cellulosic biomass. In this review, we highlight the advantages and disadvantages of the petroleum fuels, been in use this far. In addition, we focus on the processes of alternative fuel production and their impacts, both positive and negative, at environmental, economical and ecological levels. The review also addresses how the available cellulosic biomass resources at our disposal can be used to positively affect the future generations.