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BioDiesel has nothing to do with ethanol! it's very similar to regular diesel and can be made from a variety of oil... Algae is the most promising source of bioD and there is a lot research going on in that field since it can be grown quickly not just in ponds but also in transparent tubes or even large bags.
sugar cane, palm oil,etc... can be used for bioD which is safe for most diesel. the only issue is that it cleans the tanks and lines so expect frequent filter change at the begining....
actually, it is possible to run many diesel of used vegie oil. some work boats do that too as well as many road cars... you just need to filter heat and warm it up a little to get it fluid enough.
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