Biodiesel. A fuel produced from oilseed crops such as soy, rapeseed (canola) and palm oil, and from other oil sources such as waste cooking oil and animal fats. Biodiesel is used in diesel engines installed in cars, trucks, buses and other vehicles, as well as in stationary heat and power applications. Most biodiesel is made by chemically treating vegetable oils and fats (such as palm, soy and canola oils, and some animal fats) to produce fatty acid methyl esters (FAME). (Also see hydrotreated vegetable oil (HVO) and hydrotreated esters and fatty acids (HEFA).