Biodiesel is an alternative fuel similar to conventional or ‘fossil’ diesel. Biodiesel can be produced from straight vegetable oil, animal oil/fats, tallow and waste cooking oil. The process used to convert these oils to Biodiesel is called transesterification. This process is described in more detail below. The largest possible source of suitable oil comes from oil crops such as rapeseed, palm or soybean. In the UK rapeseed represents the greatest potential for biodiesel production. Most biodiesel produced at present is produced from waste vegetable oil sourced from restaurants, chip shops, industrial food producers such as Birdseye etc. Though oil straight from the agricultural industry represents the greatest potential source it is not being produced commercially simply because the raw oil is too expensive. After the cost of converting it to biodiesel has been added on it is simply too expensive to compete with fossil diesel. Waste vegetable oil can often be sourced for free or sourced already treated for a small price. (The waste oil must be treated before conversion to biodiesel to remove impurities). The result is Biodiesel produced from waste vegetable oil can compete with fossil diesel. More about the cost of biodiesel and how factors such as duty play an important role can be found here.