Climatic vicissitudes have laid further stress on already dwindling fossil fuels. In response to the emerging energy needs, biofuels can be considered as the safest and sustainable energy resources. At present, ethanol fermentations have been successful in fueling motor vehicles in some countries. However, with the existing population dynamic, obtaining ethanol from food competing resources/ commodities might not be a desirable option. Therefore, non-food competing second-generation biofuels are the right choice to accommodate the increasing energy demand. Regarding the production of biohydrogen, shifting from food competing substrates to non-food competing natural resources would be geared at dawn of biohydrogen productions. In this review potential of lignocellulosic biomass, the largest renewable natural resource for biofuels’generation has been discussed in reference to economical consideration. The strategies will likely involve thermophilic microbes possessing cellulolytic as well as ethanologenic potential. The process economics might be supported to some extent by procuring byproducts of some value from the bioenergy fermentations. Nutritional evaluation of the fermentation residues for animal feed may improve the biofuel economics. The proposed strategies appear promising more specifically in reference to climatic conditions of Pakistan.