With the immense potential of bioenergy to drive carbon neutrality and achieve the climate targets of the Paris Agreement, this paper aims to present the recent advances in bioenergy production as well as their limitations. The novelty of this review is that it covers a comprehensive range of strategies in bioenergy production and it provides the future prospects for improvement. This paper reviewed more than 200 peer-reviewed scholarly papers mainly published between 2010 and 2021. Bioenergy is derived from biomass, which, through thermochemical and biochemical processes, is converted into various forms of biofuels. This paper reveals that bioenergy production is temperature-dependent and thermochemical processes currently have the advantage of higher efficiency over biochemical processes in terms of lower response time and higher conversion. However, biochemical processes produce more volatile organic compounds and have lower energy and temperature requirements. The combination of the two processes could fill the shortcomings of a single process. The choices of feedstock are diverse as well. In the future, it can be anticipated that continuous technological development to enhance the commercial viability of different processes, as well as approaches of ensuring their sustainability, will be among the main aspects to be studied in greater detail.