 Biodiesel is obtained from vegetable oil or animal fats (biolipids) which are mainly Fatty acid methyl esters (FAME), and transesterified with methanol.It can be produced from many types of oils, the most common being rapeseed oil (rapeseed methyl ester, RME) in Europe and soybean oil (soy methyl ester, SME) in the US.Methanol can also be replaced with ethanol for the transesterification process, which results in the production of ethyl esters.