FAME is produced via biomass esterification, where fats are broken down then reacted with methanol to produce a final product similar to fossil diesel, but with a higher oxygen content. Like conventional diesel, biodiesel must comply with a CEN standard, EN14214. This ensures a standard quality and performance when FAME is used in a diesel engine, whether as pure biodiesel or as a part of a diesel/biodiesel blend. EU engine manufacturers have performed tests on blends with 5 to 10 % biodiesel, 25 to 30 % biodiesel, and with 100 % pure biodiesel, resulting in guarantees for each blend. Blends are designated “B”, followed by a number indicating the percentage biodiesel; B100 would be pure biodiesel. B7 is currently the maximum blend permitted by the Fuel Quality Directive for sale across the EU, although in this case B7 indicates a maximum FAME content of 7 %. No minimum FAME content is required by EU legislation.

Unlike other renewable fuels, biodiesel is compatible with the existing transport fuel distribution system, and can also be used efficiently as a heating oil.