At least initially, Biodiesel seems like a pretty good option to replace traditional oil. Biodiesel uses fats or vegetable oils and other ingredients to create a replacement for conventional oil derived diesel (petrodiesel). According to
Wikipedia, this replacement functions in much the same way as petrodiesel but can substantially reduce green house emissions (other than nitrogen oxide), especially when a mix of the two fuels is used. The fuel is biodegradable, non-toxic to humans and can be used in conventional diesel engines. The fuel can even be recycled from
used vegetable oil that would otherwise be discarded from restaurants, though if adopted widely demand would far exceed supply.
Biodiesel is not without its critics however, even within environmental spheres. The ease at which Biodiesel can be produced at home has been
greatly exaggerated, with significant safety and cost issues to be done well. The production of palm oil crops for the fuel has already resulted in
widespread deforestation in the Philippians and Indonesia, threatening natural wildlife and resulting in more CO2 from the burning of the rainforests. As it is based on crops, Biodiesel production can have a significant
impact on food prices which is a significant humanitarian issue.
Several University studies have concluded that the energy and pollution payback from crop-produced is poor and the process is not sustainable. While the end product of Biodiesel is quite environmentally friendly, the actual process of producing large scale quantities may actually be more damaging than the fuel they are trying to replace. Unless there is a major breakthrough in production (
possibly with algae?), I’m afraid that sustainable Biodiesel will be limited to small scale production dependant on the availability of waste vegetable oil, and won’t be a major player in the green movement.