Biodiesel is produced by a process called transesterification in which vegetable oils, animal fats, or waste cooking oil are converted into methyl esters through a chemical reaction with methanol in the presence of a catalyst, such as sodium methylate. The conversion process results in pure Biodiesel (B100) being produced as well as glycerine (crude) as a by-product.

Biodiesel performs similarly to mineral diesel with comparable economy, horsepower and combustion and has the following advantages:

 
Biodiesel is a renewable fuel, non-toxic and rapidly biodegradable;
Biodiesel boasts approximately 50 percent less lifecycle CO2 emissions than mineral diesel;
Biodiesel helps lower particulate exhaust emissions;
in a blend with low-sulphur diesel, Biodiesel improves lubricity;
has a higher cetane number than mineral diesel, thus ensuring quick engine start-up in cold climates;
in a low percentage blend, it can often be used without modification to the engine;
in a low percentage blend, it can be supplied using the existing fuel supply infrastructure through standard diesel pump equipment; and
its high flashpoint makes it a safer fuel to handle than any conventional fuel.