Biodiesel is a clean-burning alternative to petroleum diesel made from domestic, renewable resources such as vegetable oils, recycled cooking oil and animal fats.Generaly Biodiesel is produced by a process called trans-esterification.In this process,the vegetable oil or animal fat is reacted with methanol or ethanol and a catalyst, such as Sodium Hydroxide / Potassium Hydroxide, to produce a methyl ester - the Biodiesel. The methanol or ethanol and the catalyst used in the process are recovered and can be re-used. The by-product of biodiesel production is glycerine, which can be used for other purposes.

Biodiesel can be used in virtually any diesel engine without modification. It can be used in its pure form (called B100) or as a blend with diesel fuel at any ratio. The most commonly used form of biodiesel is a 20% blend of biodiesel with 80% petroleum diesel, known as B20.