Biodiesel is an alternative fuel made from plant oils that can be used directly or blended with diesel fuel in vehicles. It is produced through a process called transesterification which converts vegetable oils like soybean and jatropha oil into a fuel similar to diesel. While biodiesel was first demonstrated running in Rudolf Diesel's engine in 1900, its use is growing particularly in Europe and the US. India also aims to increase biodiesel production but faces challenges of establishing large jatropha plantations and consistent supply of vegetable oils at scale. The document discusses biodiesel production methods and feedstocks as well as the benefits of biodiesel including being renewable and less polluting than petroleum diesel.