The convergence of a number of social, economic, and political developments, at both the national and global levels, has created much interest in developing biodiesel as an alternative to petroleum diesel. In response to higher energy prices, along with government incentives, the fledgling biodiesel industry is beginning to grow at a rapid pace. However, there are clearly economic limits to biodiesel's growth potential and questions are being raised about the future role biodiesel can play in reducing our energy dependence Since vegetable oils and animal fats will continue to be used primarily for food products, biodiesel production can only supply a small portion of our fuel needs. To further increase biodiesel production, we will need to develop new sources of feedstock and develop new technologies to convert a broader spectrum of feedstocks.