Awareness on global warming has led to greater emphasis on renewable energy as the next source of energy. Renewable energy sources such as biofuels, wind energy, hydroelectric power, geothermal and solar powers are the solutions for the world not to be excessively dependent on fossil fuels. These renewable energy sources do not emit excessive harmful gases or particulates to the environmental. Instead, it has the potential to mitigate climate change and solve environmental pollution. Among these renewable energy sources, biofuels particularly biodiesel has been anticipated as the best alternative energy source in transportation sector.