Biodiesel can be manufactured from any product containing fatty acids, such as vegetable oil or animal fats.

The report, "The greenhouse and air quality emissions of biodiesel blends in Australia" assesses the emission levels and environmental impacts of biodiesel produced from sources including used cooking oil, tallow (rendered animal fat), imported palm oil and canola.

CSIRO Energy Transformed National Research Flagship researcher and report author Dr Tom Beer believes the wider introduction of biodiesel in Australia could help address the high greenhouse gas intensity of our nation’s transport sector.

“The results of this study show biodiesel has the potential to reduce emissions from the transport industry, which is the third largest producer of greenhouse gases in Australia, behind stationary energy generation and agriculture,” Dr Beer said.