The world needs an alternative for transportation, although other automobile technologies like natural gas, hydrogen, and plug-in- electric are available, but not effective for long term uses. Further, climate change, volatile oil prices, depleting oil resources and an increasing demand of energy lead researcher to search for an alternative fuel, which would be economically efficient, socially equable and environment friendly. Biodiesel can be a suitable alternative for next generation fuel, as it does not contain any aromatic compound and a result of either transesterification of triglyseride or esterification of free fatty acids (FFAs). It is, whether pure or blended, produces low exhaust pH emissions, SO2, hydro carbons, CO, toxin, compare too petrodiesel. In a developing country, like India, where vehicle emission standards are less stringent and where old polluting cars are more common, biodiesel are the best solution as they are nontoxic, biodegradable and an oxygenated fuel. Currently biodiesel cost 1.5-3 times than conventional diesel. The high cost of feedstock raw material is the main hurdle in commercialization of biodiesel production. To reduce its cost new alternatives like waste oil from food non-edible oils such as Jatropha, algal oil have been studied for the biodiesel production. Present paper is an attempt to review, how biodiesel have high potential in present scenario, and its future perspectives.
