Biodiesel, which is also known as fatty acid methyl ester (FAME), is produced from the transesterification of vegetable oils or animal fats with the addition of methanol (Lin et al. 2009). This type of biofuel contains no petroleum products, but it is compatible with conventional diesel engines and can be blended in any propor­tion with fossil-based diesel fuel to create a stable biodiesel blend (Lin et al. 2011).

Commercially, these blends are named B5, B20, or B100 to indicate the per­centage of the biodiesel component in the blend with petrodiesel (these percent­ages are 5, 20, and 100 %, respectively). Some of the main countries in grain production have established various stages of implementing or expanding the man­datory blending of biodiesel in motor fuels. This type of policy is crucial for the establishment of the biodiesel industry (Janaun and Ellis 2010).

Figure 4 presents an estimate of biodiesel production, consumption, exports, and imports for 2013 and 2020.

In 2010, the European Union (EU) was the leading biodiesel market with a pro­duction share of 52.8 %, and it was followed by the Americas with 33.9 % and Asia with 3.5 % (Sawhney 2011). Thus, the EU is the world’s largest biodiesel industry and market (Yusuf et al. 2011). Currently, each state has set different targets and regulations, but the average biodiesel blend is estimated at 5.75 % (IEA 2011).

The US production of biodiesel is smaller than the European production and shows important differences. Soybean oil is the most commonly used feedstock in the USA, and it is followed by rapeseed oil and soy oil. A stable consumption of 1 billion gallons per year is estimated from 2013 to 2020, and the production will tend to increase. This pattern will ultimately create export opportunities for the US biodiesel industries.

Argentina is a major exporter of biodiesel, which is produced almost exclu­sively from soybeans. The country has an export-oriented industry that is respon­sible for the estimated increase of biodiesel production and exports from 2013 to 2020. B7 was recently introduced in the domestic market (IEA 2011). However, the country’s exportable surplus is projected to increase 13 % from 2013 to 2020.

In Brazil, most of the biodiesel production is meant to satisfy the domes­tic demand, which is motivated by government policies. Nevertheless, a slight decrease in domestic consumption can be expected by 2020, as shown in Fig. 4. Biodiesel producers expect to gradually increase the demanded biodiesel volume from B7.5 to B10 in 2014 and to B20 by 2020. Currently, the net exports’ projec­tions remain at modest levels and will not exceed 60 million gallons by 2020.

The dominant feedstock is soybean oil, although Brazil is investing in alternative vegetable oils to produce biodiesel.

The source for biodiesel production is chosen according to the appropriate raw materials’ availability in each region or country. In Malaysia and Indonesia, coco­nut oil and palm oils are used for biodiesel production. The combined biodiesel production in Indonesia and Malaysia is expected to increase approximately 20 % by 2020, and both countries are net exporters. Their domestic production growth is limited by small domestic demand, high feedstock prices, and strong competi­tion from the Indonesian availability in the export markets. The Malaysian govern­ment has started to implement a B5 policy (IEA 2011). However, the domestic consumption is expected to remain stable.

A few other countries are considering the introduction of biofuels policies, which could create an additional global demand for vegetable oils and grains. This new demand would potentially influence both the grain and oilseed processes and these commodities’ availability for food, livestock, dairy, and poultry production.

In this context, algae may represent a promising alternative to grain oil, as they can be produced in many locations with enough sunlight. The most significant dis­tinguishing characteristic of algal oil is its conversion into biodiesel: The conver­sion rate is up to 50 % (Demirbas 2007). For traditional biodiesel, key areas for improvement include more efficient catalyst recovery, improved purification of the coproduct glycerin, and enhanced feedstock flexibility (IEA 2011).

The world biodiesel price (Central Europe FOB) and the biodiesel price for this fuel when it is bought directly at a plant show similar trends in Fig. 5.

From 2007, when approximately 3 million gallons of biodiesel were produced, to 2012, an increase of 104 % was observed in the total produced amount. In the same period, the world biodiesel price increased by 49 %. The cost of biodiesel

fuels varies depending on the feedstock, the geographic area, the variability in crop production from season to season, the price of crude petroleum, and other fac­tors (Demirbas 2007). Increasing crude oil prices and the mandates in Argentina, Brazil, the EU, and the USA have led to price increases throughout the period under consideration. In 2011, a high biodiesel price ($5.75) per gallon occurred, and there was a small decline in 2012. Below, we briefly outline the history of the two major producers of biofuels that stand out in the current scenario: Brazil and the USA.