There are mainly to types of biofuels that are used today: ethanol and biodiesel. Ethanol is an alcohol that is produced from biomass, corn, wheat and sugarcane. It can then be blended with traditional gasoline. The result is a type of fuel that maintains a higher octane level while still having reduced emissions of greenhouse gases. The other kind of biofuel, biodiesel, is instead derived from natural oils. Such oils include vegetable oils or animal fats.
The two most widely used types of biofuels are ethanol and biodiesel. Just a brief review, ethanol is an alcohol fuel derived from sugarcane, wheat, corn and biomass, thus including wasted cooking oil. It can be blended with conventional petroleum diesel to improve its octane level resulting in reduced greenhouse gas emissions. On the other hand, biodiesel is made from natural oils such as animal fats or vegetable oils.
The production process
Ethanol is generated either by wet or by dry milling. The later process is the more widely used. It works with either starch or sugar. Yeast is added to these components. The mixture is then being used for a fermentation process. The end product of the fermentation is alcohol. Biodiesel on the other hand, is produced by so-called transesterification. It is a chemical process that removes glycerin and methyl esters from the raw oils.
Compatibility
Any engine that runs on diesel power can use biodiesel. The situation with ethanol is a little bit more complicated. It is only used as an additive to gasoline, because it not recommended to use pure ethanol for engines. But even the blended ethanol cannot be used in every car. The car’s manufactor has to determine its compatibility.

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