Production of biofuel from renewable resources has gained interest to the government’s, researchers and policymakers throughout the world due to the depletion of conventional fuels and environmental issues. As a country that is rich in various types of bioresources, Malaysia can be one of the top biofuel producers in Asia. Several types of biofuels can be produced from these resources, including biobutanol, four-carbon alcohol that has outstanding characteristics more similar to gasoline. Thus, this chapter will begin with an overview of biobutanol production and the possibility of Malaysia bioresources as a feedstock in biobutanol production. The role of the government in existing policies and action plans towards the development of Malaysia's renewable energy industry also has been analysed. Subsequently, several challenges and resolutions related to the development of biobutanol production were also addressed. The potential of biobutanol to replace gasoline and the economics of ABE fermentation in biobutanol production will be the last part of this chapter. Overall, this chapter will give a better understanding and view of the current situation on biobutanol production using Malaysia's renewable resources.
