Biodiesel is a CO2 neutral alternative to fossil diesel and fuel oil, and as such it may reduce our dependence on fossil fuels.

Many studies also indicate that particle pollution is significantly reduced with the use of biodiesel, which is why it is used in urban buses in a number of large towns and cities, including Graz in Austria. Biodiesel also provides cleaner combustion and good lubrication of the engine, where it can replace the standard additives.

In the event of environmental spills, biodiesel breaks down faster. Among other things, this reduces the risk of pollution from residential oil tanks.

Biodiesel may, however, result in an increase in the emission of nitrogen oxides. The future use of biodiesel should therefore be considered in conjunction with various filter systems designed to reduce the amount of hazardous materials in car exhaust fumes.