Biodiesel is oil from organic sources that has been chemically altered to improve its performance as fuel. Use of recycled oils and fats as a raw material advances the positive environmental benefits of biodiesel production; however, other common sources of raw material oils include oil from canola, soybeans, rapeseed, and rendered animal fat. Straight vegetable oil (SVO) however, is not biodiesel and the use of SVO as a diesel substitute is not recommended by engine manufacturers.

Biodiesel is made in a chemical reaction process called transesterification, by chemically converting any natural oil or fat to a refined ester. The conversion is done with a catalyst, and an alcohol such as methanol or ethanol. The reaction produces a non-toxic, biodegradable, and saleable by-product, glycerol.

Biodiesel production is safe, and inexpensive to implement on a commercial scale. Biodiesel production to meet regulatory standards of fuel quality requires proven technology and chemical process control to insure safe operation and a consistent quality product.