Containing no petroleum, biodiesel can be blended with petroleum diesel to create a biodiesel mixture. It is produced from raw domestic materials or resources to create a clean burning alternative to petroleum diesel. It is used in diesel (compression ignition) engines that need little or no modification. Making a biodiesel fuel requires a certain knowledge and basic science. To start off raw materials such as vegetable matter is needed. Corn is one of the most common vegetables used, although due to Geographical reasons this may not be regularly available. Other options can include, but are not limited to, soybeans, rapeseed, flax and sunflower etc.  A small quantity of Methanol is also required. Using the raw vegetable product, vegetable oil is made. While this is not used by itself to make biofuel, it is a vital component that will be processed into biodiesel.

The conversion of vegetable oil into biodiesel is occasionally called ester interchange or esterification. This process is completed once the vegetable oil has been combined with a small quantity of methanol. It is then introduced to a small amount of an alkaline catalyst. With vegetable oil being made up of three main components called triglycerides (a glycerin with three fatty acids), the aim of the ester interchange is to detach the fatty acids and replace them with the same amount of methanol molecules. Once complete, this process will give a supply of approximately 90% biodiesel fuel, and 10% glycerin byproduct.

A variety of esterification techniques can be applied when making biodiesel fuel. Specific oils and fats have to be filtered and contaminants and water have to be removed. If present, free fatty acids can also be removed or otherwise turned into biodiesel by the utilization of pretreatment technologies. The fats and oils, once pretreated, can then be combined with a catalyst and an alcohol. (usually sodium or potassium hydroxide and ethanol). The triglycerides (oil molecules) are then broken down and turned into glycerin and methyl esters. These are then separated and purified.

There are ways for the more adventurous person to make their own biodiesel fuel at home, although this is not generally recommended. Use around 15 liters of used vegetable oil waste (or other similar oil product) and brew in 5-gallon heavy duty plastic buckets for ease of transportation and handling of the end product. Potassium hydroxide (catalyst) and ethanol is also required. Slightly heat the ethanol and stir in the catalyst (potassium hydroxide). Stirring vigorously, introduce the mixture to the oil. Let stand overnight so that separation occurs. The biodiesel will rise to the top of the container and can be poured off. Make sure that safety equipment and clothing is worn throughout.

It has been reported that within 10 to 15 years, it will be possible to make a perfectly good and sustainable Biodiesel Fuel from micro-algae. A pilot study is soon to be set up in Wageningen, with the hopes that various techniques, funding, and production logistics will be realized and brought eventually to fruition.