Alternate fuels are essential in improving air quality, and in decreasing dependence on fossil fuels. They help reduce emission of the greenhouse gases, but as we all know, financial barriers are preventing the global spread of such technology. That is why governments all over the world are cofinancing large-scale projects, and even the simple domestic projects in creating renewable energy, from wind power, solar energy, etc. Driven by unstable oil prices, consumption, and climate changes as result of high emissions of greenhouse gases, the sector of transportation has shown a great interest in overcoming these barriers. Biofuels have a potential to replace petroleum fuels on a global scale. The first generation biofuels are produced from sugar, the second generation is produced from agricultural wastes, and not from food crops, meaning it is much more sustainable and has a lower impact on food production. Biodiesel is an alternative to conventional diesel, made from renewable resources such as non edible vegetable oils, and small engine modifications or none are required for the usage of biodiesel. There are two companies in Croatia that manufacture electric vehicles and both are located in the area of Zagreb. One of the companies is Rimac, which created state of the art vehicle, Concept one. But the average consumer can not afford such vehicles. Therefore, the aim of this thesis is to point out the consequences of excessive use of fossil fuels, and the pros and cons of alternative fuels.