The diploma thesis deals with the problematics of biofuels as a renewable source of energy in transportation, which has recently gotten under social spotlight. The theoretical part is focused on an explanation of basic terminology, historical development and especially reasons for the need to replace current fosil fuels with respect to an increasing volume of CO2 and shortening oil reserves. The practical part compares characteristics, use, pros and cons of the biofuels of the first and second generation and tries to estimate benefits of the biofuels of the second generation in both economic and environmental area
