Liquid biofuels have come up strongly as possible substitute to conventional fossils fuels and woodfuels apparently because of its perceived environmental benefit, sustainability and recent hikes in petroleum fuel prices. These have led most countries to include biofuels in their energy mix to mitigate climate change effect caused by petroleum fuels and also to ensure energy security. Ghana as a developing country has also identified the potential of biofuels in her energy mix by setting some targets in its Strategic National Energy Policy (SNEP). This paper analyses the implications of the policy as presented in SNEP. It also looks at programmes put in place to achieve the set objectives and the possible challenges that are likely to be faced in their implementation. The paper concludes by calling for strong governmental involvement in achieving the set objectives.