Bio-diesel is chemically nothing but Methyl ester produced from vegetable oils and animal fats and has properties similar to that of petro-diesel. Bio-diesel is a domestic renewable fuel that can be used in all types of diesel engines with small or no modifications to the engine. It is bio-degradable, non-toxic and essentially free of sulphur and aromatic hydrocarbons. Bio-diesel reduces CO2 emissions by 80% and SO2 emissions by 100%1. Bio-diesel is the only alternative transport fuel to have fully completed the health effects testing requirements of the 1990 Clean Air Act amendments.