The statement is true. The energy in fossil fuels is derived from the energy stored in plant and animal matter.The energy in fossil fuels (coal, oil, gas) is Chemical Potential Energy. Fossil fuels come from decayed plant and animal matter that has stored energy in its chemical bonds (bonds of atoms and molecules). The energy stored in these bonds are transferred to fossil fuel. Fossil fuel are hydrocarbons and produces energy by combustion and produces light and heat.