An overview of biofuel development in Canada including question of sustainability. If biofuels are developed carefully and deliberately, they can be the foundation for a more sustainable future. The utilization of biomass in Canada will represent a major shift and adaptation. Economic, environmental and social aspect to sustainable development require assessing the impacts of our first-generation investments. Agricultural biotechnology holds the promise of providing new feedstocks for energy production and other industrial products. Industrial biotechnology can be applied to both biobased and non-bio feedstocks, supplying processes that are less energy or chemically intensive.