The term biodiesel has no unambiguous definition. It stands for neat vegetable oils used as DF as well as neat methyl esters prepared from vegetable oils or animal fats and blends of conventional diesel fuel with vegetable oils or methyl esters. With increasing emphasis on the use of esters as DF, however, the term “biodiesel” increasingly refers to alkyl esters of vegetable oils and animal fats and not the oils or fats themselves.

Vegetable oils and their derivatives (especially methyl esters), commonly referred to as “biodiesel,” are prominent candidates as alternative diesel fuels. They have advanced from being purely experimental fuels to initial stages of commercialization. They are technically competitive with or offer technical advantages compared to conventional diesel fuel.

Biodiesel reduces most emissions while engine performance and fuel economy are nearly identical compared to conventional fuels, besides being a renewable and domestic resource. Several problems, however, remain, which include economics, combustion, some emissions, lube oil contamination, and low-temperature properties. An overview on all aspects of biodiesel is presented.

The use of vegetable oils in diesel engines is nearly as old as the diesel engine itself. The inventor of the diesel engine, Rudolf Diesel, reportedly used groundnut (peanut) oil as a fuel for demonstration purposes in 1900.

The fuel and energy crises of the late 1970's and early 1980's as well as accompanying concerns about the depletion of the world's non-renewable resources provided the incentives to seek alternatives to conventional, petroleum-based fuels. In this context, vegetable oils as fuel for diesel engines were remembered. They now occupy a prominent position in the development of alternative fuels.

Numerous different vegetable oils have been tested as biodiesel. Often the vegetable oils investigated for their suitability as biodiesel are those which occur abundantly in the country of testing. Therefore, soybean oil is of primary interest as biodiesel source in the United States while many European countries are concerned with rapeseed oil, and countries with tropical climate prefer to utilize coconut oil or palm oil. Other vegetable oils, including sunflower etc., have also been investigated. Furthermore, other sources of biodiesel studied include animal fats and used or waste cooking oils.