:Biodiesel is a new fuel as a renewable form of liquid energy which can be used directly in existing and unmodified Diesel-engines. It is produced from virgin plant oils, but also from spent oils of plant or animal origin. The first Biodiesel fuel specification was developed in Austria and positive engine test results led to acceptance in numerous engine. Emission tests showed substantial reductions of exhaust emissions affecting global and local air pollution. Further environmentally friendly properties are low toxicity and fast biodegradability. With a favorable energy balance in the range of 1:3 Biodiesel is an attractive renewable energy form. The economical feasibility was improved by utilizing cheap raw materials like used frying oils and by reducing process cost. It is supported by political measures like detaxations in most European countries or like the Clean Air Act in the USA thus internalizing the various benefits into the fuel price. A review of the current status of Biodiesel projects and production in Europe and in North America is given.