Biodiesel is a renewable fuel that is produced through the transesterification of vegetable oils or animal fats. Biodiesel can come in several forms with the most notable and widely used being “alkyl esters,” which can be used in unmodified diesel engines. This is in comparison to straight vegetable oils and waste vegetable oils that can only be used in modified diesel engines. Soy bean oil is primarily used for the production of alkyl esters.  

 There appears to be a great deal of upside in the use of biodiesel over conventional diesel gasoline. Biodiesel fuel has lower engine wear, lower emissions, produced domestically, and renewable. Many vehicles built after 1992 are even already biodiesel compatible, yet one should check with the manufacturer before consumption, because biodiesel deteriorates conventional rubber gaskets and tubing over time. Studies also show that biodiesel has the best energy balance of any transportation fuel. For every unit of fossil fuel in the production process 3.2 units of energy are gained.

Currently biodiesel is used in a mixture with petroleum diesel, and only has a small role in the overall market. There is still a degree of caution with most manufacturers and consumers concerning biodiesel. Many manufacturers have warranty limits on the biodiesel to petroleum diesel ratio. Besides the transportation market biodiesel also can be used as a heating fuel in domestic and commercial boilers.  

Biodiesel and ethanol are inevitably linked because of the agricultural space limitations in their production. Therefore, the price and profit of one fuel source will effect the future production of them both. The current increased demand for corn associated with the use of ethanol as an oxidizer in gasoline will likely drive future resources available to soy bean biodiesel in the long run.

The biodiesel industry has grow rapidly in the past 5 years. For more information on developments in the biodiesel industry, the National Biodiesel Board has a useful website.