The demand of fuels as a source of energy for various operations is
increasing daily. This has led to increased demand of fossil fuels, particularly by
transportation and industrial sectors. There are multiple problems related to
conventional fossil fuels like firstly, they are non-renewable resources with limited
reserves. Secondly, fossil fuels pose serious environmental and health issues. Fossil
fuels are one of the leading sources of emission of atmospheric greenhouse gases
(GHG), resulting in global warming and thus climate change. These limitations and
adverse effects of the use of fossil fuels have warranted scientists and policymakers to
look for renewable and greener alternatives such as biofuels. Based on the type of
feedstock used, biofuels are classified as first-generation, second-generation and thirdgeneration. First-generation biofuels are based on edible resources which are already
scanty. This has led to increased interest in second and third-generation biofuels. The
agricultural waste and inedible crops constituting lignocellulosic materials are
important second-generation biofuel feedstocks. The second-generation feedstocks can
be a great alternative to conventional fossil fuels, but there are a few limitations, such
as the cost and efficiency of production. Currently, scientists are looking at the role of
fungi and utilization of various fungal enzymes in the hydrolysis of the lignocellulosic
substrates for efficient and cost-effective production of biofuels. Nanomaterials have
the ability for the better utilization of enzymes, biofuels, biodiesels and other microbial
fuels. Therefore, nanotechnology can be utilized to address the challenges through
various mechanisms and processes. This chapter is an attempt to focus on the role of
fungi and fungal enzymes for better utilization of feedstock and sustainable production
of renewable, cost-effective, environment-friendly biofuels.
Keywords: Biofuels, Fossil fuels, Fungi, Fungal enzymes, Lignocellulosic materials.
