The modern world is facing many challenges such as population growth, the need to provide sufficient food, climate change, increasing environmental pollution, rising energy prices, new environmental regulations, high depletion of oil and other minerals, growing socio-environmental issues, as well as the need for energy security. All these challenges have led to significant progress in the research and development of renewable energy sources, and it is expected that in the search for alternative energy sources in the future the model of renewable energy production from biomass will be a goal to be pursued by most countries. However, in order for this task to be successfully completed in the coming period, it is necessary to overcome several challenges, among which the most important are the economic sustainability of biomass production and collection and its conversion into various forms of bioenergy. Bioenergy is becoming a central issue of sustainability as it reduces greenhouse gas emissions and air pollution and increases diversity and energy security. In this context, the contribution of modern and sustainable bioenergy must be significantly increased in final energy demand, as well as an increase in the share of sustainable low-carbon biofuels in transport fuels. In addition, carbon emissions should be gradually reduced based on life cycle estimates, using biofuels to replace fossil fuels. It should also increase global investment in sustainable and low-carbon bioenergy, including advanced and flexible biorefineries capable of producing energy and products based on biomass and bioeconomy. However, the expansion of the bioeconomy – defined as a set of activities related to innovation, development, production and use of biomass or processes of production of renewable energy, materials and chemical products – should be based on sustainable practices that guarantee greenhouse gas emission reductions and avoidance of adverse effects from ecological, economic and social point of view. Despite the growing consensus on the importance and urgency of accelerating the development of bioenergy and biofuels, investment is not as intensive as necessary, and the implementation of technologies encounters a number of barriers, such as large initial investments, financial risks, volatility in oil and other commodity prices and regulatory uncertainties. This chapter provides an overview of the potentials and future trends in the use of biomass for various types of bioenergy. Special emphasis is placed on the most significant challenges in the processing and use of biomass in the future. Data on the improvement of technologies in the use and processing of biomass in the future, including combustion, co-combustion, gasification, pyrolysis and combined heat and electrical energy, are presented. An overview of some of the most important biofuels of the future is also given, such as: biohydrogen, biobutanol, biooils and bio-dimethyl ether.