biomass plantSerbia has a significant potential for production of biofuels; however, no detailed study which includes the sustainability criteria according to the Directive on renewable energy sources has been performed since the last amendments to the Directive. Bioethanol is ethanol produced from biomass or biodegradable parts of biodegradable waste/residues. It is mainly produced from sugar crops, starch (e.g. corn) or cellulose (wood materials), as well as from various biodegradable waste materials. Due to complexity of its production and use, it is much more convenient to use biodiesel. Biodiesel can be produced from oleiferous plants, such as sunflower, soybean and rapeseed. It can also be produced from waste cooking oil. About 10.000 tons of waste cooking oil can be collected annually in Serbia for production of biodiesel.