Biodiesel is a form of diesel fuel derived from plants or animals and consisting of long-chain fatty acid esters. It is typically made by chemically reacting lipids such as animal fat (tallow), soybean oil, or some other vegetable oil with an alcohol, producing a methyl, ethyl or propyl ester.

Unlike the vegetable and waste oils used to fuel converted diesel engines, biodiesel is a drop-in biofuel, meaning it is compatible with existing diesel engines and distribution infrastructure. Biodiesel can be used alone or blended with petrodiesel in any proportions. Biodiesel blends can also be used as heating oil.