Fatty acids are acids produced when fats are broken down. They are considered âgood fats.â These acids are not highly soluble in water, and they can be used for energy by most types of cells.They may be monounsaturated, polyunsaturated, or saturated.atty acids are acids produced when fats are broken down. They are considered âgood fats.â These acids are not highly soluble in water, and they can be used for energy by most types of cells.