Biodiesel is a generic name for a diesel replacement fuel that is manufactured from either vegetable oils, animal fats and or recycled cooking oils. Biodiesel is manufactured from naturally occurring fats from plants and animals.

The manufacturing process converts these oils and fats into chemicals called fatty acid methyl esters (FAME) or more commonly biodiesel. Glycerine is a co-product of the biodiesel manufacturing process.

Replacing petroleum derived diesel fuel with biodiesel offers these advantages:

• It can be used in most diesel equipment with no modifications or, in some instances, only minor modifications.
• It reduces global warming gas emissions.
• It reduces tailpipe emissions, particularly the toxic components.
• It is essentially free of sulphur, so the emissions do not contribute to acid rain.
• It is non-toxic, biodegradable, and suitable for sensitive environments.
• It has a higher flashpoint, so it is safer to store and transport.

Biodiesel can be used as a blend in any proportion with petroleum diesel.

In a blend the number following the “B” indicates the percentage of biodiesel, for example B20 is 20% biodiesel blended with petroleum diesel, B5 is 5% biodiesel blended with petroleum diesel.

Starting in Europe, the production and use of biodiesel has developed and become well established in many parts of the world. Annual consumption in Europe is about 3 billion litres.

Initial production in Europe was from rapeseed oil (canola), whereas manufacturers in the US used soybean oil. Further developments have seen the use of animal fats and used cooking oils. Whilst in Asia, palm oil is the principal feedstock.

In 2001, the Australian Government set an objective that biofuels would contribute at least 350 million litres to the total fuel supply by 2010. It is anticipated that biodiesel will be an important component of this volume.

In New Zealand the mandated introduction of biofuels will commence in 2008, with the aim of 3.4% of the total fuel sold in New Zealand to be biofuel by 2012.