Green algae are used to produce it Search for information about biodiesel production through the metabolism of algae, one problem is that machines are required to do so, depending on how much you want to do to choose a method.
Several resources can be used for biodiesel production, including oilseeds crops (such as soybeans, canola, sunflowers, etc), algae as mentioned by Andrei, and even the used and wasted oil.
A video produced by SARE (http://cookingupastory.com/energy-independence-on-farm-biodiesel-fuel-production), about 16 minutes, tells the production of 'biodiesel' step by step from Sunflower seeds by a farmer on his farm. The story goes from essential equipment needed, the harvest of the seeds, dry the seeds, press the seeds, to process of the oil and get biodiesel. They also presented the benefit and the limitations of biodiesel, and the comparison of the regular diesel and biodiesel. Pretty interesting. The SARE (Sustainable Agriculture Research and Education) provides these kind of funding to involve the farmers in University researches.
Biodiesel (blending with diesel) is prepared by transesterification process. This consists of three consecutive chemical reactions in which vegetable oil (corn, rape seed, sunflower, palm etc.) converts to biodiesel in the presence of catalyst. Acid catalyst transesterification process is used when fatty acids are more than 1%. This is prepared according to ASTM standards. Cetane number of Diesel is 45 whereas cetane number of biodiesels varies in the range of 45-55 in general. Vegetable oils have cetane number in the range 35-45.
The vegetable oil is mixed with methanol or ethanol and catalyzed by NAOH or KOH this process called transesterification process . This method is influenced by several factors such as: reactive mode, the proportion of alcohol / oil, alcohol kind, catalyst quantity, reactive time and reactants pureness as well.
Biodiesel is produced from vegetable oils, yellow grease, used cooking oils, or animal fats. The fuel is produced by transesterification—a process that converts fats and oils into biodiesel and glycerin (byproduct).
Please find the simple procedure to obtaine 95% of yeild