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• Biodiesel is the name of a clean burning alternative fuel produced from domestic, renewable resources. Biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel to create a biodiesel blend. 
• It can be used in compression ignition(diesel) engines with no major modifications. Biodiesel is simple to use, biodegradable, nontoxic, and essentially free of sulfur and aromatics.
• Biodiesel is defined as the mono alkyl esters of long chain fatty acids derived from renewable liquid feedstocks, such as vegetable oils and animal fats for use in diesel engines. 

Process

• Biodiesel fuel is made by the transesterfication of soy or rapeseed triacyglycerides with methanol in the presence of a strong base catalyst such as sodium hydroxide, potassium hydroxide, or sodium methoxide.
• In general, the standard storage and handling procedures used for petroleum diesel can be used for biodiesel. The fuel should be stored in a clean, dry, dark environment. 
• Acceptable storage tank materials include aluminum, steel, fluorinated polyethylene, fluorinated polypropylene and teflon. Copper, brass, lead, tin, and zinc should be avoided.

Production

• Total world production of biodiesel in 2004 was more than 2 billion litres with Germany accounting for more than 80% of the total market. Growth rates in this Member state have been outstanding. 
• Pure biodiesel (B100) in Germany enjoys a 100% fuel-tax exemption, and is sold in over 1,500 fuelling stations.
• In contrast, a 3,000-gallon tanker shipment adds only a shipping cost of $1.10 per gallon, but many individuals and businesses are not equipped to make such large purchases.

Market

• Biodiesel is available anywhere in the U.S. The National Biodiesel Board (NBB) maintains a list of registered fuel suppliers as well as petroleum distributors and retail fueling sites. 
• One of the largest factors inhibiting the widespread use of biodiesel has been its high price relative to petro-diesel.
• Currently, World Energy, the United States’ largest distributor of biodiesel, holding about 75% of the market, adds a $90 shipping fee to each 55-gallon shipment, which means adding $1.63 per gallon additional charge. 

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