The product obtained by trans-esterification of any vegetable oil is said to be bio diesel. Biodiesel is defined as the mono alkyl esters of long chain fatty acids derived from renewable lipid sources. Biodiesel is typically produced through the reaction of a vegetable oil or animal fat with methanol in the presence of a catalyst to yield glycerine and biodiesel (chemically called methyl esters).The biodiesel can be manufactured from Crude Palm Oil. The other oil sources are all the non edible oils, a few of them are Jatropha oil, Neem Oil, Karanja Oil, Mahua Oil, etc. Also used frying (cooking) oils can be used for bio diesel production.