The features of the biofuel market development in Ukraine are studied. It was determined that Ukraine has sufficient resource potential for the production of such main types of biofuels as: rare types of motor fuel (biodiesel and bioethanol), biogas from the processing of agricultural waste and other organic waste, biomass for heat production. When choosing a location for production facilities, it is necessary to focus on the availability of raw materials. The demand for biofuels, both in Ukraine and in the world, exceeds the supply. Therefore, the market is characterized by positive dynamics. The main obstacles to the development of the market are the instability of supply and sales, underdeveloped infrastructure, insufficient investment, and problems with technical equipment. Analyzing the opportunities and threats to the development of bioenergy in Ukraine, it was determined that under the conditions of state support, the benefits of developing biofuels will exceed the possible risks. It is important to create a motivational environment for business entities, to create conditions for predicting the payback periods of investment projects in this area. Prospects for the development of the biofuel market associated with the formation of bioclusters, which will allow systematic interaction between suppliers, producers, sellers and consumers of biofuels. Clusters allow you to obtain synergies from the sharing of resources, production base and infrastructure. The development of the infrastructure of the market under consideration should take place with government assistance and be considered as a strategic direction for enhancing the country's energy security. The development of electronic exchanges for trading biofuel and resources for its production is promising. In this way, the problem of stability in the sale of finished products can be overcome.