Biodiesel is an alternative fuel that can be produced from vegetable oils, animal fats, or waste cooking oil through a process called transesterification. Transesterification converts these oils into biodiesel, which can be used in standard diesel engines. Biodiesel is better for the environment as it produces less air pollution than petroleum diesel and degrades more quickly if released. It also provides benefits like better engine lubrication and the potential to reduce reliance on imported fuels. However, biodiesel also has some disadvantages like potential increases in nitrogen oxide emissions and producing slightly less power than conventional diesel.