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Two concurrent factors have renewed momentum in the development of biodiesel. First, in March this year, the 11th Five-Year Plan specified that renewable resources should be developed vigorously to increase the production capacity of biodiesel ； Following this, with oil prices continuing to rise, calls for the vigorous development of biodiesel have emerged once again. In late April, the **National Development and Reform Commission outlined a three-phase plan for the development of China’s biofuel industry: achieving technological industrialization during the 11th Five-Year Plan period, scaling up the industry during the 12th Five-Year Plan period, and pursuing vigorous development after 2015. It is estimated that by 2020, biofuel consumption in our country will account for about 15% of all transportation fuels. Biodiesel, which receives policy support in the biofuel industry, is set to experience rapid growth in the coming period. It is predicted that by 2010, China will produce 1 million tons of biodiesel per year ； By 2020, the annual production of biodiesel will reach 9 million tons. An opportunity has arisen. Biodiesel is a methyl ester of long-chain fatty acids obtained from oils and fats through decomposition and esterification. It is an environmentally friendly fuel that can replace conventional diesel, and it is a renewable energy source with sustainable resources. The oil sources for biodiesel can be vegetable oils (soybean oil, corn oil, canola oil, palm oil, etc.), animal fats, as well as used cooking oil. Experts point out that biodiesel is a clean biofuel that has become the alternative fuel with the fastest growth in production. Furthermore, the development of biodiesel holds economic significance for agricultural structure adjustment, strategic importance for energy security, and ecological benefits. As a green resource, biodiesel can not only free humanity from dependence on oil but is also a renewable energy source. As early as 2004, the **Ministry of Science and Technology launched the ‘10th Five-Year Plan’** science and technology research program titled “Development of Biofuel Technologies”. The Renewable Energy Law of the People’s Republic of China, which came into effect on January 1 this year, clearly states that the development of biomass energy should be encouraged. Not only China, but countries around the world have invested significant resources in the research and development of biomass energy. The reason is influenced by factors such as a shortage of oil resources and rising prices. This development trend is viewed positively by various international parties. It is reported that the U.S. Department of Energy is also raising funds to develop the biomass energy industry, aiming to triple the use of biomass energy in the United States by 2010; biodiesel is also considered part of biomass energy. In addition, Brazil is also actively promoting biodiesel to reduce oil imports. As early as last September, the Professional Committee on Resource Conservation and Substitution of the China Association for Comprehensive Utilization of Resources jointly released the \"Recommendations for the Development of Diesel Cars in China\" (hereinafter referred to as the \"Recommendations\") in Beijing. “The “proposal” suggests encouraging the development of modern diesel cars through incentives such as discounts on diesel prices, consumption taxes, fuel taxes, and purchase taxes. To address the shortage of diesel, **it is possible to regulate the allocation of petroleum resources through macro-control, while also promoting alternative energy sources such as biodiesel. This positive factor lays a solid foundation for the future market prospects of diesel. Industry experts point out that, against the backdrop of building a resource-conserving society, the release of the \"proposal\" is timely. This indicates that diesel has great development prospects; given the current shortage of energy in the country, biodiesel will have a certain market potential for future growth. According to the projections of the International Energy Agency, by 2015, China’s dependence on imported crude oil for supply will rise from the current 30% to over 50%. The exploitable energy sources such as coal and oil on Earth will be depleted in 200 years and 30 to 40 years respectively, while natural gas can only be used for 60 years based on its reserve-to-extraction ratio. Wang Hanzhong, director of the Oil Crops Research Institute at the Chinese Academy of Agricultural Sciences, pointed out that to prevent a catastrophic situation resulting from an energy shortage, we must find good alternatives to petroleum-based diesel. Never-depleting biodiesel will surely be a good alternative to petrochemical diesel in the future. Vigorously developing biodiesel is beneficial not only for ensuring China’s fuel security and contributing to its energy strategy, but also for leveraging its role in driving the country’s oilseed industry, thereby promoting employment and income growth for farmers, as well as aiding environmental protection. Profitable The main difference between biodiesel and conventional diesel is that biodiesel can be produced from a wide range of raw materials; flax, soybeans, canola, rubber seeds, tung seed, castor beans, peanuts, palm oil, cottonseed, as well as waste oils and vegetable oil sludge recovered from industries such as the food service sector, can all be used to produce biodiesel. Compared to conventional diesel, biodiesel possesses excellent environmental benefits, being environmentally friendly and having positive health effects. Since the carbon dioxide emitted during the combustion of biodiesel is much lower than the amount absorbed by the plants during their growth, this helps to address global warming, a serious environmental problem that poses a threat to humanity due to carbon dioxide emissions. Therefore, biodiesel is a true green diesel. It boasts excellent properties such as good lubricity, safety in storage, transportation, and use, good resistance to detonation, and complete combustion. It can be used as fuel, or it can be mixed with regular diesel as an additive in any proportion. Although the domestic biodiesel industry is still in its infancy, it holds enormous potential for development. This is because the vigorous development of biodiesel has the potential to drive the growth of the agricultural and energy sectors. Han Deqi from the Research Institute of Nanyang Paraffin Refining Factory of Henan Petroleum Exploration Bureau believes that biodiesel possesses excellent environmental benefits as well as good performance in starting engines at low temperatures; it also has favorable lubricating properties, safety features, and good fuel characteristics. As a renewable energy source, the supply of raw materials for biodiesel will not run out. Han Deqi believes that the advantages of producing and promoting the use of biodiesel are obvious: the raw materials are readily available and inexpensive, it contributes to soil improvement, the by-products have economic value, and it offers significant environmental benefits. Furthermore, biodiesel has an even brighter future due to its increasing competitiveness, **support, and the accelerating trend toward diesel-powered vehicles worldwide. It is reported that Europe is the largest user of biodiesel, with its share accounting for 5% of the refined oil market. In Europe, the main raw material used for producing biodiesel is canola oil. Currently, many countries **such as the United States, Germany, France, Denmark, Italy, Ireland, and Spain** have implemented supportive policies for biodiesel. The United States **specified that by 2010, biodiesel production should be increased to 12 million tons** ； Over the next 25 years, renewable alternative fuels will be able to meet 15% of the United States’ transportation fuel needs. As an emerging industry, biodiesel also offers considerable profits. It is said that to build a biodiesel factory, there must be access to water, electricity, ventilation, protection from rain, as well as fire and explosion prevention measures, with construction carried out in accordance with fire safety regulations. For production sites, small processing plants should have an area of 100–150 m2, medium-sized ones 300–500 m2, and large ones 500–1000 m2. The cost per ton of biodiesel (including raw materials and other expenses) is approximately 3,450 yuan; the selling price per ton is around 4,500–5,000 yuan, resulting in a profit of 1,050 yuan per ton. If 100 tons are produced per month, the monthly profit will be 105,000 yuan, and the annual profit will reach over 1.2 million yuan. According to experts’ predictions, by 2010 world demand for diesel will increase from 38% to 45%, while the supply of petrochemical diesel is severely insufficient, thereby creating vast opportunities for the industrial development of biodiesel. Currently, production costs, technological innovation, and scale are the bottlenecks restricting the development of biodiesel. Whether biodiesel can be produced on a large scale depends on whether the production technology is advanced and whether it is economically viable. Reducing the production cost of biodiesel is the primary factor. Raw material prices are crucial for the commercialization of biodiesel. Experts point out that the primary difficulty in the large-scale production of biodiesel is the issue of raw material resources. Taking oil-producing plants such as Castanopsis and Sophora toluosa as examples, they can meet the raw material needs for producing tens of millions of tons of biodiesel per year; meanwhile, the recycling of waste animal and vegetable oils can yield around 5 million tons of biodiesel annually. Thus, in theory, China has great potential for biodiesel development. However, although a certain amount of such oil-producing plants are grown in southern regions, their distribution is scattered and their quantities are insufficient to support large-scale biodiesel production. Therefore, when developing and utilizing biodiesel, the first step is to consider large-scale cultivation to establish a supply base for biodiesel raw materials; site selection should be done in line with local conditions, and the economic radius for purchasing raw materials should be determined appropriately, in order to minimize costs associated with the concentration, transportation, and storage of these materials. To reduce the cost of biodiesel overall and enable it to play a greater role in the transformation of China’s energy structure, it is only by moving toward centralized production on a large scale, adopting intensive management practices, and developing an industrialized sector that a development path for biodiesel suitable to China’s national conditions can be pursued. Secondly, a weak foundation for technology industrialization limits the large-scale development of biodiesel, leaving a significant gap compared to developed countries. Currently, the technology for producing biodiesel from used animal and vegetable oils is relatively mature, but its potential for further development is limited. The technology for producing biodiesel from oilseed plants still requires industrial testing before it can be used on a large scale. The extraction processes for plant-based fuel oils are mostly simple and crude, with relatively outdated technology; the oils contain high levels of moisture and impurities, which results in a low yield of biodiesel and limits the scope of application of this type of fuel. Furthermore, an imperfect policy and market environment also hinders the development of the biodiesel industry. China has not yet established any policies to promote the production, sales, and use of biodiesel; there are no standards for biodiesel either, nor are there any proper channels for its sale. A sound market environment along with appropriate regulations will drive the rapid development of biodiesel and contribute to the economic growth of the local area. Taking Thailand as an example, the first biodiesel production facility established in 2004 now produces 2,000 liters per day; four gas stations offer biodiesel services, and more than a thousand red pickup trucks are using biodiesel. Thailand’s Ministry of Energy plans to achieve a target of producing 8.5 million liters of biodiesel per day by 2012, so that it accounts for 10% of the country’s total diesel consumption, in order to reduce foreign exchange expenditures on imported oil. In the face of the negative impact of high oil prices on Thailand’s trade and overall economy, Thailand **is accelerating efforts to promote the production and use of biodiesel. Compared to other **, although the measures related to biodiesel are not yet very sophisticated and its development and use are still in their initial stages. However, from the perspective of development trends, biodiesel will have significant room for growth in the coming period.