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Biodiesel has been defined as the monoalkyl esters of long-chain fatty acids derived from renewable feedstocks, such as vegetable oils or animal fats, for use in compression-ignition (diesel) engines. Biodiesel has become more attractive because of its environmental benefits and the fact that it is made from renewable resources. Biodiesel is the first and only alternative fuel to petroleum diesel to have a complete evaluation of emission results. The emission-forming gasses, such as carbon dioxide and carbon monoxide from combustion of biodiesel hydrocarbons, generally are less than diesel fuel. Sulfur emissions are essentially eliminated with pure biodiesel. The exhaust emissions of sulfur oxides and sulfates from biodiesel were essentially eliminated compared to diesel. The smog-forming potential of biodiesel hydrocarbons is less than diesel fuel. The ozone-forming potential of the speciated hydrocarbon emissions was 50% less than that measured for diesel fuel.

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The energy sources have been split into three categories: fossil fuels, renewable sources, and nuclear sources. Energy new and renewable resources will play an important role in the world's future. There are several reasons for biofuels to be considered as relevant technologies by both developing and industrialized countries. They include energy security reasons, environmental concerns, foreign exchange savings, and socioeconomic issues related to the rural sector. The term "modern biomass" is generally used to describe the traditional biomass use through the efficient and clean combustion technologies and sustained supply of biomass resources, environmentally sound and competitive fuels, heat, and electricity using modern conversion technologies. Modern biomass can be used for the generation of electricity and heat. Biofuels as well as green diesel produced from biomass by Fischer-Tropsch synthesis are the most modern biomass-based transportation fuels. Green diesel is a renewable replacement to petroleum-based diesel. Biomass energy conversion facilities are important for obtaining bio-oil by pyrolysis. Pyrolysis is the most important process among the thermal conversion processes of biomass. There are four different ways of modifying vegetable oils and fats for use as diesel fuel, such as pyrolysis, dilution with hydrocarbons (blending), emulsification, and transesterification.