The production of clean bioenergy from waste materials presents a sustainable alternative to conventional agricultural feedstocks and fossil fuels, by enhancing environmental sustainability and optimizing resource utilization. According to the International Coffee Organization (ICO), global coffee consumption generated approximately 6.92 million tons of solid waste in the 2022/23 period. Among these waste streams, spent coffee grounds (SCG) represent a valuable biomass rich in organic compounds such as fatty acids, lignin, cellulose, and hemicellulose, offering significant potential for the recovery of high-value chemicals. Fatty acids extracted from SCG have emerged as a promising feedstocks for biodiesel production through transesterification. This chapter explores various oil extraction methods from SCG and their subsequent conversion into biodiesel. It provides a comparative analysis of conventional extraction techniques, such as Soxhlet extraction, alongside advanced approaches like microwave-assisted extraction (MAE), and discusses biodiesel production methods, ranging from conventional transesterification to advanced processes like supercritical ethanol extraction. Furthermore, the chapter reviews recent research on the feasibility of SCG-derived biodiesel from both sustainability and economic perspectives. With ongoing advancements in extraction technologies and biodiesel conversion processes, SCG holds significant potential as a sustainable alternative feedstock for biodiesel production.