The first documented use of biodiesel was by Rudolph Diesel, whom the alternative energy source is named after. Rudolph Diesel created the first biodiesel, peanut oil, to use on his prototype engine at the World's Exhibition in Paris. Vegetable oils were used until the engine was modified to accept petroleum diesel, in which became the primary fuel. Numerous times throughout history, such as World War 2, the oil crises of the 1970's, and environmental concerns have cause interests in biodiesel. They even started creating new ways for engines to start accepting vegetable oil once again, such as, pyrolysis, blending with solvents, transeterification, and emulsifying the fuel. In the current time period biodiesel counts less than one percent of diesel fuels used.
How Biodiesel Is Made
Biodiesel, most commonly, is produced through the process of transesterification. This involves taking triglycerides, naturally occurring carbon chain molecules, and converting them into methyl esters, which is also known as biodiesel. They do this by reacting free fatty acids with an alcohol to the triglycerides.
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Major Biodiesel Company: "Renewable Energy Group Inc." ( http://www.regfuel.com/) 
"Renewable Energy Group, Inc. is leading the biodiesel industry by marketing more biodiesel than anyone in the United States. Nevertheless, we’re continuously working to find new markets for biodiesel in many industries. We sell REG-9000TM biodiesel to distributors so American’s can have cleaner burning fuels that help lessen our dependence on foreign oil."
