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The Future of Fuel Biodiesel Production from Recycled Vegetable Oil What is Biodiesel? Biodiesel is a fuel for conventional Diesel engines made from plant or animal oils that have been chemically altered to alkyl esters. Biodiesel is a fuel for conventional Diesel engines…. Diesel engines are compression-ignition engines developed by Rudolph Diesel Diesel engines were originally designed to run on peanut oil, not mineral diesel. Diesels have been made which run on milk powder, coal dust and straight vegetable oil. …made from plant or animal oils or fats… Biodiesel can made from a very wide range of ‘feed stocks’. They can be animal fats and tallows, or vegetable oils. Algae can even be used We make biodiesel from waste vegetable oil from deep-fryers.