The price gap between traditional diesel and biodiesel is expected to narrow, as petroleum based products become scarcer. Agricultural and environmental subsidies will also help with this.
Not to be confused with waste vegetable oils (WVO), that are often used in converted diesel engines, biodiesel can be used in diesel engines that are un-modified. Bio-diesel can be used alone, or mixed with conventional hydrocarbon based diesel.
It is important to note, that although biodiesel can be used in almost all modern diesel engines, it will degrade rubber components in older vehicles a lot faster than with traditional diesel. Older vehicles are recommended to upgrade their rubber parts with a non-reactive product known as FKM, if they are planning on using biodiesel in their vehicle.
Investment dictionary. Academic. 2012.