Biodiesel is a renewable fuel made through a chemical process called transesterification, where vegetable oils or animal fats react with alcohol in the presence of a catalyst to produce fatty acid alkyl esters. It can be used in diesel engines as a substitute for or additive to petroleum diesel. Biodiesel production has environmental benefits like reducing greenhouse gas emissions and promoting rural development through job creation. However, there are also constraints like higher fuel consumption and potential impacts on food security if feedstocks compete with crops for land.