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Biofuels are becoming more important in the renewable energy sources mix. Liquid biofuels are products of agriculture. Bioethanol can be prepared from corn, beetroot and other plants. Biodiesel is mainly made from rapeseed. This paper presents information about biodiesel development in Poland, as well as some background information about its development in the European Union (EU). We analyzed the data about biofuels in the literature, and provide statistical data about liquid biofuel in Poland and other countries of the EU. The aim of the study is to assess the viability of liquid biofuel development in Poland. The base for biodiesel production in Poland and the EU is rapeseed. The production yields and sown area of rapeseed increased in Poland from 2005–2020. This was due to integration and European Union policies which aim to supply clean energy. The energy mix in Poland differs from that of the EU. Solid biofuels have made up the biggest share of renewable energy sources in Poland (73.4%) and the EU (40.1%). Poland has smaller share of wind energy, biogas, heat pump, water energy, solar anergy, municipal waste and geothermal energy in its renewable energy sources compared to the rest of the EU. Only with solid and liquid biofuels is the share of renewable energy sources larger in Poland compared to the EU averages. Poland has decreased its share of solid biofuels and water energy among its renewable energy sources, while other sources have increased. Poland is investing to increase its renewable energy sources. To analyze the opportunities for biodiesel production in Poland, we used the scenario method of analysis. We outlined three scenarios. The first is increasing the production of biodiesel by 3% each year for the next three years. The second is production remains unchanged, i.e., at the 2020 level. The last scenario is decreasing production by 3% each year. According to the first scenario, the total demand for rapeseed for energy and food purposes will be 375 thousand tons in 2025. Such a scenario is very likely to occur because of the growing demand for biodiesel and edible oil. The current situation with Ukraine and the Russian Federation will create an increase in demand for rapeseed, leading to higher prices. [ABSTRACT FROM AUTHOR]