Fatty Acid Methyl Esters (FAME), commonly known as biodiesel, are renewable chemical compounds derived from the transesterification of fats and oils. This chemical process reacts vegetable oils, animal fats or recycled cooking grease with an alcohol (typically methanol) in the presence of a catalyst. The resulting fuel shares similar physical properties with petroleum diesel but offers a cleaner burn with significantly fewer particulate matter and GHG emissions. Because it is derived from renewable biological sources, FAME serves as a critical component in the global effort to decarbonise commercial transportation and logistics sectors.

Why FAME is highly effective as a renewable fuel, it is primarily used as a blend component rather than a total replacement for fossil diesel. Most standard diesel engines can safely run on blends containing up to 7% or 20% FAME (known as B7 and B20) without requiring mechanical modifications. However, using 100% FAME (B100) poses technical challenges, such as poor cold-flow properties that can coupe fuel to gel in winter, and lower oxidation stability, which can lead to fuel degradation during long storage periods. To imitate this issues, FAME is mixed with regular diesel or advanced renewable diesel to balance sustainability with engine performance.