Biomass is a renewable and an unconventional source of energy that is lately increasingly replacing fossil fuels and other conventional energy sources. Reducing CO2 emissions has become of great importance worldwide, considering the ongoing climate change and global warming that are happening on Earth. Biomass is divided into two main categories; biomass grown intentionally for generating energy and organic residues. Biofuels obtained from biomass can be classified into three categories: first, second and third generation biofuels. Biofuel production in Croatia is very scarce and relies mainly on the first and second generation of biofuels. Croatia’s diverse vegetation and its abundance in natural resources makes its biomass potential very high. Two of the most prominent forms of biomass in Croatia are agricultural crops and residues as well as forest biomass.If biomass resources in Croatia were used in an optimal way, it will undoubtedly affect the development of most regions, especially agricultural regions that have recently been severely abandoned due to the current economic crisis.Therefore, exploring the potential that can be provided by a strategic use of Croatia’s biomass resources could lead up to new job openings and great contribution to the domestic industry which is particularly important considering the current state the nation is in.