Biodiesel is produced through transesterification, a chemical process where oils and fats in plants and animals are processed into the substances of the fuel. As early as 1853, scientists J. Patrick and E. Duffy had already conducted some kind of transesterification.

In 1900, Rudolf Diesel, the inventor of the diesel engine, demonstrated a diesel engine that ran on peanut oil. However, the fuel cannot be considered biodiesel because it didn't go through transesterification.

Interest in the use of vegetable oils as fuels remained through the 1920s and 1930s. Different countries, such as France, the United Kingdom, Japan, and China tested and experimented with these oils during; however, they encountered some problems because of the viscosity of the vegetable oils, which led to engine deposits.

G. Chavanne of Belgium produced the first biodiesel in 1931. Since then, various research and experimentation have been conducted to improve biodiesel. In the 1990s, European countries began installing biodiesel power plants. By 1998, 21 countries began producing commercial products. Today, manufacturers use several sources to manufacture biodiesel.

In Australia, all metropolitan trains and almost all buses in Adelaide run on 5% biodiesel mixed with petroleum. The South Australian Government plans to move up to 20% biodiesel soon. In Canada, the government has set a goal of producing 500 million liters of the fuel by 2010. In Finland, a local oil company plans to build a production plant with a capacity of 170,000 tons per year.

Scotland has a a power plant capable of producing 50 million liters per year. Brazil has three commercial biodiesel factories that produce 45.6 million liters per year. In India, the government encourages the cultivation of Jatropha plants, the oil of which is used for railway engines.

Farmers in the United States use the fuel in their tractors to raise public awareness. Aside from these countries, Thailand, Norway, Belgium, Costa Rica , Singapore, and others have also already taken steps to increase their biodiesel production.

National governments around the world are making policies to increase the biodiesel blends that they use to fight global warming. By improving fuel technology, establishing larger biodiesel networks, raising people's awareness and increasing biodiesel use, the Earth may see a better future through this clean and green fuel.