Almost one fourth of the energy consumed in the U.S. comes from imported oil and only 6% is produced from renewable sources despite the fact that the U.S. is responsible for 20% of the global pollution with barely 4% of the world population. Biofuels are a promising source of renewable energy for the United States and the rest of the world, with favorable energy and environmental balances. If price conditions are adequate for the basic input producers, biofuels will have an important social impact, as well. Colombia has the possibility to participate in the national and international biofuel substitution markets for gasoline and diesel with ethanol and biodiesel, respectively. oil palm, Sugar Cane and yuca, are the raw materials with the best potential.