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Biodiesel is primarily made from domestic renewable resources, which include vegetable oils, animal fats, and recycled cooking oil. This fuel is produced through a process called transesterification, where triglycerides in these fats and oils react with an alcohol (most commonly methanol) to produce biodiesel and glycerin.

The significance of biodiesel being derived from renewable resources lies in its potential to reduce dependence on fossil fuels, decrease greenhouse gas emissions, and provide an alternative to traditional petroleum-based diesel fuel. By using plants and fats that can be replanted and harvested, biodiesel contributes to sustainability and energy security.

This makes biodiesel distinct from other options. For instance, coal and natural gas are fossil fuels, while synthetic chemicals are typically not derived from renewable biological sources. Fossilized organic materials also do not fit the definition of renewable resources, as they refer to materials formed over millions of years and are not sustainable in the same way that biodiesel feedstocks are.