Pure biodiesel has low aquatic toxicity and is completely biodegradable in about 30 days. This characteristic substantially reduces the impact of accidental spills and makes it ideal for use in environmentally sensitive areas, including inland waterways. When biodiesel is blended with regular diesel fuel, biodegradation is accelerated to about three times the normal rate of diesel fuel. Europe, the United States, New Zealand and Canada have conducted extensive tests of biodiesel in trucks, cars, locomotives, buses, tractors and small boats. Testing has included the use of pure biodiesel and various blends with conventional diesel.
Results indicate reduced engine wear while performance remains virtually unchanged.
Many tests have concluded that the best overall results are obtained with a blend of 20 per cent biodiesel and 80 per cent conventional diesel. Although biodiesel is cleaner-burning, some anticipate that this advantage will diminish as progress is made in reducing emissions and increasing the efficiency of combustion from petroleum based diesel fuel. Biodiesel is also competing with other 'clean' alternative energy sources such as electricity, propane and natural gas in some applications. A secondary benefit of biodiesel production is that it creates more employment as it is three to six times more labour intensive per unit of production than fossil fuels. The prices of feedstock used in the production of biodiesel relative to petroleum prices is a key determinant in the feasibility of biodiesel.